Man U board recommends shareholders sell
(Agencies)
Updated: 2005-05-27 08:37

Remaining shareholders in Manchester United should sell out to new owner Malcolm Glazer, the club's board recommended Thursday.

Tampa Bay Buccaneers team owner and president Malcolm Glazer, right, joined by Joel Glazer, left, are all smiling as they gather for the announcement of Tampa Bay being awarded the 2009 Super Bowl, during the NFL's Spring Meetings at the Ritz-Carlton Hotel in Washington, Wednesday, May 25, 2005. [AP]

Glazer's Red Football Ltd. owns 76.2 percent of shares in the world's richest soccer club. The board said current shareholders should accept Glazer's offer of $5.55 per share.

Glazer also owns the NFL's Tampa Bay Buccaneers.

"The Board of Manchester United believes that there are risks of remaining as a minority shareholder in Manchester United," the club said in a statement to the London Stock Exchange.

"The board has now unanimously concluded that, unless Manchester United shareholders have strong non financial reasons for wishing to stay invested in the company, they should accept the offer, as the board intends to do so in respect of its own beneficial holdings."

Glazer's offer is open until June 13.

United's statement came in response to the formal offer document submitted by Glazer on May 23 to remaining shareholders. The price is the same he offered earlier this month in a $1.47 billion takeover deal.

Glazer plans to take United off the stock exchange by June 22 at the earliest.

As the owner of more than 75 percent of the club's shares, Glazer can write off his debt on the club's books and take it private. Man United has been traded on the stock exchange since 1991.

Many Man United fans, including small shareholders, are opposed to the takeover. They fear that Glazer's heavily leveraged takeover will saddle the club in debt and result in higher ticket prices.

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