Speculation in the media and speculation in the market, just another week in the ongoing news vacuum of Manchester United Plc's (NYSE:MANU) potential takeover process.
Amidst speculative tabloid reports that the Qatari takeover was now “very close”, Manchester United’s New York listed shares were up nearly 5% in Wednesday’s session, and, practically unmoved in today’s premarket, are now back priced around the $20.00 per share marker.
The price still has a few dollars left to recover versus the U$23.66 share price that preceded last month’s report that “the sale was off” and that the Glazer family members intended to retain their controlling ownership stake in the Manchester football club.
Media reports in Qatar, across UK tabloids, and a variety of social media posts circulated on Wednesday evening claimed Sheikh Jassim bin Hamad Al Thani is on the brink of agreeing a takeover.
Several reports cite Qatari outlet Alkass TV Sports as being the underlying source of the latest reports.
Sheikh Jassim, a Qatari businessman with familial links to the Qatari ‘establishment’, is positioned as the only bidder seeking to buy 100% of Manchester United, with a bid believed to be in the region of £5 billion. The Glazer family reportedly seek a valuation nearer £6 billion.
INEOS boss Sir Jim Ratcliffe, meanwhile, has rival proposals to acquire a partial stake in the club which on paper equate to a total valuation that’s closer to the Glazer asking price. Earlier this month, it was reported that Ratcliffe could potentially buy only a minority stake and partner with the Glazer family.
Throughout the process, there has been scant comment from either the football club or the Glazer family regarding the protracted sale process or regarding the volatility of the New York listed shares.
Meanwhile, the club’s fourth quarter financial results statement and accompanying investor call for the three months ended 30 June, has evidently been delayed or shelved – typically, Manchester United makes this report in the third week of September.
As a ‘foreign issuer’ the company is not subject to as strict rules on quarterly reports, which would otherwise make it mandatory to file quarterly results after 35 days, though it is required to file its year-end reports within four months of the period ending (therefore it must do so by the end of November).