United's shares rise as rumours of bid increase

Shares in Manchester United have climbed due to reports that the football club was being circled by potential investors, including the Sultan of Brunei and an Irish group headed by Mr J.P. McManus and Mr Dermot Desmond.

United's shares closed up 3 1/2p at 214 1/2p yesterday after reports that chief executive Mr Martin Edwards was looking to sell part of his shares.

Mr Edwards, who owns 14 per cent of the club, sparked controversy last year when he agreed to back a £623 million sterling takeover bid for the club by satellite TV company BSkyB.

Reports in Britain suggest that an initial bid from the McManus- Desmond consortium, of 190p a share for 10 per cent of Manchester United - a total bid of £50 million - was rejected by Mr Edwards. The consortium is also believed to include other leading horseracing figures Mr John Magnier, Mr Vincent O'Brien, Mr Michael Tabor and Mr Robert Sangster. A spokesman for Mr Desmond said yesterday that he had no comment on the reports.

It is believed that Mr McManus, a financial trader and former bookmaker, was introduced to Mr Edwards by the club's manager, Mr Alex Ferguson, who knew him through horseracing circles. It is not clear whether the consortium retains its interest after the rejection of its initial bid.

Meanwhile, the Daily Mail yesterday reported that the Sultan of Brunei, one of the world's richest men, had offered to buy 10 per cent of the club from Mr Edwards.

The paper said the Sultan had offered 220p a share, or around £60 million, for the holding.

Mr Edwards is believed to be interested in selling part of his shareholding, but does not want to relinquish his position at the club.

United's share price has climbed steadily over the last week as rumours of a potential buyer have circulated in London.

Last Friday, shares in the club closed at 199.5p.

The shares peaked at 240p in March this year before competition authorities blocked the BSkyB takeover.

For Mr Desmond, it would be his second foray into the football world. He is already a major shareholder in Glasgow Celtic, buying a 13.8 per cent stake in 1995, which he has since increased.

Mr Desmond, Mr McManus and Mr Magnier have already invested together in another project - the high-profile Sandy Lane Hotel in Barbados, which is being redeveloped.

Mr Desmond also owns London City Airport and has a string of investments at home and overseas through his holding company, International Investment and Underwriting. He would have access to substantial financial resources if he wishes to increase the bid for the shares.