Reports that high-profile Irish businessmen Mr John Magnier and Mr JP McManus are planning to sell their stake in Manchester United were played down in the market yesterday as the two failed to make a statement on the matter.
Cubic Expression, the company owned by Messrs Magnier and McManus that controls the stake, is the largest shareholder in Manchester United.
Shares in the group dropped 4 per cent in early trade yesterday as reports circulated that the two Irish financiers were preparing to offload their shares following an alleged rift with club manager Sir Alex Ferguson over the £29.3million sterling (€42.48 million) purchase of Rio Ferdinand last summer.
This theory is questionable, since Cubic continued to raise its stake in the club after the Ferdinand move had been completed.
Commentators suggest a more realistic argument would be the recent 40 per cent rise in United's share price amid talk that the club could be taken over completely.
Analysts believe that Cubic's 10.37 per cent stake could be difficult to sell in one block but the stake could be sold in parts to institutional and private buyers.
"It's a good-quality company and there's always more supply than demand," said one British analyst yesterday.
Another suggested that a sale for Cubic could be timely and profitable, describing such a deal as an "exit strategy" for Messrs Magnier and McManus. It is estimated that they could make a profit of around £10 million if they sold at current levels.
However, both analysts acknowledged that Manchester United shares would be under pressure as long as the future of the Cubic stake remains unclear.
Shares in the company closed virtually unchanged at £1.45 last night. No comment was forthcoming from Cubic.
Manchester United supporters have pleaded with Messrs Magnier and McManus to make their stake available to the fans first if they decide to sell.
Mr Oliver Houston, spokesman for Shareholders United (SU), the organisation set up to oppose BSkyB's takeover bid in 1999, does not think a share sale is imminent but called on the Irish businessmen to look towards the fans rather than pure profit if they are intent on relinquishing their interest.
"We think of Shareholders United as the natural guardians of Manchester United's 125-year history achieved," Mr Houston said. - (Additional reporting, PA)
