Manchester United Plc (NYSE:MANU)'s board is set to discuss the proposals to buy the club in a meeting due to take place in the coming days, according to a Bloomberg report, which cited sources claiming INEOS boss Sir Jim Ratcliffe is "emerging as the front runner".
Ratcliffe is “in talks” focused on deal structure with United's majority owners, the Florida-based Glazer family, and his advisors, the report claimed.
The Bloomberg report, which cites people with knowledge of the matter, said the current talks follow a recent revision to Ratcliffe’s approach.
His original offer was to buy the 69% stake owned by the Glazers to gain control of the football club.
But more recently, Ratcliffe is said to have made an alternative proposal to initially buy 25% by taking shares from third-party shareholders as well as a smaller portion of Glazer stock.
It comes after some minority shareholders scorned the proposal, claiming it treated equity holders unfairly, and as certain Glazer family members were reportedly reticent to sell, believing that the commercial value of football would continue to rise in the coming years.
Amidst these factors, talks at boardroom level are now slated, the Bloomberg report said.
Ratcliffe could end up with an initial 25% stake in Manchester United in a deal that would value the whole club at more than £5 billion ($6.1 billion).
"The Glazer family currently views Ratcliffe’s bid for a minority stake as more attractive than an alternative Qatari offer for the whole club," Bloomberg sources said.
The Bloomberg report added: "While the Glazer family is closer than ever to finding a palatable deal, the situation remains fluid and the Qatari group could still increase its bid."
In New York, the football club’s listed subordinate shares (a reduced voting right share class not held by the Glazer family) remained steady on Friday, priced just below $20.00.
Public shareholders are less likely to see direct benefit of the Ratcliffe proposal, unlike the rival bid from Qatar businessman Sheikh Jassim bin Hamad Al Thani, which seeks to buy 100% of the club’s equity.
Tabloid media reports from outlets in the UK and Qatar earlier this week claimed a Qatari takeover was “very close” and those reports helped a 5% rally in the Manchester United share price.
It has been nearly a year since the protracted sales process began.
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, have 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).