Manchester United Plc (NYSE:MANU) stock rallied as much as 5% in Wednesday’s early dealing in New York amidst the latest round of speculative reports in the British tabloids.
At around US$23.05, the football club’s shares were up US$1.22 or 5.6% shortly after the trading session began in New York.
Qatari banker Sheikh Jassim has “won the race” to buy the Manchester club, beating rival bidder INEOS, according to the Mirror, which added that the deal will be completed by October.
It follows a similar report in The Sun, Britain’s other ‘red top’ tabloid.
Sky News, meanwhile, reported today that Sheikh Jassim’s offer to buy Manchester United is “still on the table” and there are still doubts whether the club’s Florida-based current owners, the Glazer family, actually want to sell – despite running a protracted nine-month-long process that kicked off in November last year.
According to Sky, Sheikh Jassim is aware of reports that he’s close to buying the club but as far "as he is concerned the situation has not changed”.
In Manchester United’s original statement back in November, the club said it would look at a range of options, including new investments into the club, a sale or other transactions involving the company.
Sheikh Jassim’s offer, reportedly pitched between £5 billion and £6 billion (varying between reports), seeks to acquire 100% of Manchester United, including the equities listed on the New York Stock Exchange.
Whereas the offer from INEOS was said to be a partial acquisition that would see the Jim Ratcliffe-backed chemicals and energy company take the majority, if not all, the shares held by the Glazer family, but not the New York-listed stock.
The INEOS bid could possibly see some members of the Glazer family retain a minority holding, potentially with option agreements presetting the terms of their future full divestment.