Financiers Mr JP McManus and Mr John Magnier have scotched speculation that they are keen to offload their 10 per cent stake in Manchester United by increasing their holding in the company.
The billionaire businessmen told Manchester United yesterday they had raised their stake in the football club from 10.37 per cent to 11.4 per cent. The move will have cost the two men about €4.3 million. Messrs McManus and Magnier purchased the extra shares through their Virgin Islands-based investment company, Cubic Expression, which is Manchester United's largest shareholder. The entity now holds almost 30 million shares.
It was reported last week that Messrs McManus and Magnier were preparing to sell their holding in Manchester United after an alleged disagreement with the club's manager, Sir Alex Ferguson. The raising of the Cubic stake marks a new stage in a period of speculation over the financiers' plans for their holding.
Shares in Manchester United have been highly volatile over the past week amid reports that at least two parties had examined bids for the club. The company lost 4 per cent of its stock market value last Friday on the back of speculation about a Cubic sale, while shares rose 10 per cent on Monday on reports that former football league chairman Mr Keith Harris was interested in an offer. An unnamed Russian billionaire has also been cited in connection with a possible takeover.
Yesterday's disclosure is likely to reignite speculation that Messrs Magnier and McManus could also be mulling a bid. This has, however, been played down in the past and the businessmen have not commented on the issue. They are not obligated to make a bid unless their holding exceeds 29.9 per cent.
Takeover speculation at the club has been fuelled by recent stake-building by several high-profile investors, including Mr John de Mol, Dutch media tycoon, and Mr Malcolm Glazier, who owns American football Super Bowl champions Tampa Bay Buccaneers.The shares closed virtually unchanged at £1.60 last night. The Cubic statement was made after the market closed.
