Manchester United has called off talks with US sports tycoon Malcolm Glazer about his proposed offer for the world's richest club but has not ruled out further discussions.
In a statement today the debt-free club said it did not support the capital structure of the proposed offer and did not welcome a structure involving a large level of debt to finance any takeover.
"The board has decided to inform all shareholders that it would regard an offer which it believes to be overly leveraged as not being in the best interests of the company," Manchester United said.
Mr Glazer, owner of the American football team Tampa Bay Buccaneers, has steadily built his stake in the British club to 28.11 per cent in recent weeks, sparking speculation of a imminent bid which could value it as much as $1.4 billion.
One analyst said Manchester United's refusal to accept a heavily indebted offer established the club's first line of defence and put the onus on Mr Glazer to come back with a concrete, financed bid.
Fans of the 126-year-old club have been particularly hostile to Mr Glazer because of reports he planned to put the club into debt in order to finance his takeover.
Manchester United said it intended to have further talks with the Glazer family and other interested shareholders to develop a long-term solution to bring stability to the company's ownership structure. This follows months of takeover speculation surrounding the club.
Shares were down 0.4 per cent at 282-1/5 pence in early trading.