Holders of Manchester United Plc's (NYSE:MANU) New York Stock Exchange listed shares are pressurising the Florida-based Glazer family members which own the football club’s controlling shares, that’s according to latest reports.
The minority shareholders would naturally prefer that the club’s protracted takeover process ends in favour of Qatar bidder Sheikh Jassim bin Jaber Al Thani, as his consortium seeks to buy 100% of the football club whereas the rival transaction with INEOS owner Sir Jim Ratcliffe is expected only to involve shares held by the Glazers.
Manchester United’s New York listed equity carries weaker voting rights, compared to the Glazer family’s ‘class b’ shares, and therefore the British businessman could effectively run the club with significantly less than 100% of the stock.
Silence has persisted around the continuing process in recent days and weeks despite seemingly strong reports, in late June, that the Qatari offer was ‘in the lead’ after making an improved bid.
Ratcliffe, during a media interview promoting a newly published book, this week insisted that he was still “in the process” and had “had good discussions” with the Glazer family but added that he couldn’t say too much as he is subject to non-disclosure agreements.
Sheikh Jassim, meanwhile, could ‘give the Glazers money sooner’, according to a new report by The Athletic.
A report in The Times said that the Sheikh Jassim bid is being “helped” by some of Manchester United’s A-class shareholders who are putting pressure on the club’s board to recommend the Qatari bid.
In New York, the rules on the takeover of listed companies differ from those in London.
But, due to London’s ‘Takeover Code’, if Manchester United shares were listed on the LSE then any purchaser that ‘gained control’ (which the code defines as owning over 30% - because that would be enough to block proposals at AGMs) would be required to make a mandatory offer to all shareholders, at the highest price paid for shares by the bidder during the prior twelve months.
Such a rule would prevent minority shareholders from being cut out of deals or being offered less for their shares.