Board set to reject Glazer's bid again

The battle for United

Manchester United's board are expected to deliver another snub to Malcolm Glazer next week by rejecting the American's £800 million indicative offer for the club. The tycoon, who owns the Tampa Bay Buccaneers American football club, has told United's board he is willing to pay 300p a share in cash for the company; the closing price on Friday night was 268p.

Manchester United's board are expected to deliver another snub to Malcolm Glazer next week by rejecting the American's £800 million indicative offer for the club. The tycoon, who owns the Tampa Bay Buccaneers American football club, has told United's board he is willing to pay 300p a share in cash for the company; the closing price on Friday night was 268p.

Having looked closely at the club's books and sorted out a financing package with his lenders, Glazer's merchant bank, NM Rothschild, told United's City advisers, Cazenove, last week that they were in a position to make an offer. United said they needed more time to consider their position, and the board will meet next week to decide whether to recommend the offer.

Their main objection to the US tycoon's proposals is that his bid carried too much borrowing, which could destabilise the club. This position was articulated by Greg Dyke, the former director-general of the BBC and an ex-director of United, who warned that if Glazer took over the club could end up like Leeds United, who went into administration with debts of £100m.

Glazer has tried to quell these fears by changing the structure of his offer, cutting the bank-debt element and using a type of investment called a preference share. However, this is unlikely to convince staunch opponents of the bid, such as United's chief executive, David Gill, who are worried about the wider effects if Glazer were to purchase the club.

United's largest shareholders, Cubic Expression, have said they will not accept a bid unless it is recommended by United's board. Cubic, run by the Irish tycoons J P McManus and John Magnier, own 29 per cent of United shares, while Glazer owns 28 per cent.

About 15 per cent of the club is owned by private shareholders, many of whom are fans who would not sell out to Glazer at any price. The rest are held by City institutions, who will sell out at the highest price they can get.

Some fans are working hard to galvanise opposition to he American's takeover, encouraging supporters to boycott the products of United's sponsors should Glazer gain control of the club. Nor were they impressed by the suggestion that the American would make a £20m transfer fund available to Sir Alex Ferguson, the club's manager. That sum is hardly a king's ransom these days, and it would not allow United to compete with Chelsea, or even Arsenal, in the transfer market.

"This talk of a £20m sweetener is a total con," Mark Longden, the spokesman for the Independent Manchester United Supporters' Association, said. "He is borrowing the money anyway, so it is the supporters who will have to pay that back.

"And as for more of the debt being in his name, once he bought Manchester United, it would be regarded as an asset just like his caravan parks in Florida. If he couldn't pay back the money he owed, the club would be sold off just like everything else."