US sports tycoon Malcolm Glazer has tightened his grip on Manchester United this evening after increasing his stake in the British soccer club to about 70 per cent.
Mr Glazer clinched a deal earlier today to buy out the soccer club's biggest shareholders.
Red Football Ltd, acting on behalf of Mr Glazer, said this afternoon it had agreed to buy a 28.7 per cent stake in United from Cubic Expression, the investment vehicle of Irish race horse magnates John Magnier and JP McManus, for 300 pence a share.
As a result of the deal, Mr Glazer, who already holds 28.1 per cent, increased his share to 56.9 percent of the world's richest soccer club and under UK takeover rules must bid for the rest.
Mr Glazer then raised his stake to about 70 percent this evening, after his banking advisers acquired another 6.45 percent held by Scottish mining billionaire Harry Dobson.
His advisers have also spent the afternoon buying up shares in the open market.
"We have just under 70 percent as we speak," the source said, adding that Glazer would probably issue a statement tomorrow morning to inform the market of his increased holding.
If he manages to gain control of 75% plus one share, Manchester United could be delisted from the stock exchange and Mr Glazer could transfer his debt onto the club.
The bid of 300 pence per share values the soccer club at £790 million (€1.15 billion), and will give the Irish duo an estimated profit of £70 million (€102 million) from their investment.
"Glazer is in the driving seat, although he's had to go a bit hostile without the board's approval," said Richard Bullas, a fund manager at Rensburg Investment Management.
Rensburg holds some Manchester United shares in its small-cap fund. Shares in Manchester United had jumped 12.8 per cent to 299p by 2.22pm.
Mr Glazer said his stake purchase from the Irish investors' vehicle Cubic Expression had been settled, and therefore when the offer is formally made it will be unconditional.
Manchester United said in a statement it was awaiting the formal terms of the offer and would make a further announcement when its board has reviewed the offer.
Last month, United said the Glazer approach was fair and reasonable but that it did not believe the offer was in the best interests of the club because of the high level of debt in the bid and therefore could not recommend it.
Mr Glazer, the owner of American football team the Tampa Bay Buccaneers, and his sons Avi and Joel plan to heap up to £300 million of debt on to the club's balance sheet, and raise the remainder of the cash themselves.
The 15-times English soccer league champions, home to star players Wayne Rooney and Ruud van Nistelrooy, is debt free and has argued that it needs this flexibility because failure to qualify for the European Champions League would wipe out its annual pre-tax profits.