Manchester United board will not recommend Glazer's offer to shareholders

The Premier League club has confirmed it has received a revised proposal from the family of American businessman Malcolm Glazer, with a view to launching a £790m takeover bid. A statement from the board revealed: “The proposal involves a lower level of senior debt than the previous proposal with the equity in the bidding vehicle being supplied by Glazer and an issuance of preferred securities. These preferred securities would be issued by a holding company above the bidding vehicle, such securities only being secured upon the shares in that holding company.â€Â The statement added that the proposed offer, if made, is at a level the board would consider fair, although the statement adds although the proposal might be deliverable, “the nature and return requirements of this capital structure will put pressure on the business of Manchester United, particularly if Glazer's business plan was not met. The Board continues to believe that Glazer's business plan assumptions are aggressive and that the direct and indirect financial strain on the business could be damaging.â€Â The statement concludes: “If the current proposal were to develop into an offer - and there can be no certainty that this will occur - the Board considers that it is unlikely to be able to recommend the offer as being in the best interests of Manchester United, notwithstanding the fairness of the price. However, it is ultimately for the shareholders to determine whether an offer will succeed.â€Â To be successful, Glazer would need to secure a 75% stake in the club and would need to persuade the club’s biggest shareholders JP McManus and John Magnier to sell the 28.8% stake they hold via the Cubic Expression investment vehicle. However, a spokeswoman for the pair revealed at the weekend they remain committed long-term investors in the club despite the latest proposal. The club’s share price closed on Friday at 270.25p per share, almost 30p below the proposed offer price.