BSkyB sells United stake to racing duo

Tuesday, 7 October 2003 12:00 AM

Satellite broadcast giant BSkyB has sold its ten per cent stake in football club Manchester United, triggering takeover rumours.

Speculation over the eight-time Premiership champions being the subject of a possible takeover mounted after the satellite broadcaster, one of Man Utd's biggest shareholders, announced the sale of its 25,950,827 shares in the club.

The shares have been sold to racing magnates John Magnier and JP McManus, who were already the club's biggest shareholders with 11.4 per cent through their Cubic Expansion Company.

The latest deal takes the pair's share in the club to 23.25 per cent

A statement from BSkyB said: "The price per share paid of £2.39 reflects the closing price on 6 October and both the final and special declared dividends.

"Prior to the sale, BSkyB held Manchester United plc shares. BSkyB will therefore receive gross proceeds of approximately £62 million."

A statement from Manchester United to the London Stock Exchange added: "Manchester United has now been advised that the Cubic Expression Company Limited has, as at October 7 2003, a holding of 60,144,730 ordinary shares representing approximately 23.15 per cent of the issued share capital of Manchester United."

Last month, Florida-based businessman Malcolm Glazer, who owns Super Bowl champions the Tampa Bay Buccaneers, raised his stake in the Red Devils to 5.9 per cent.

Rumours of a takeover attempt of Manchester United by a group have gathered pace since Russian billionaire Roman Abramovich bought rivals Chelsea in July this year.

The takeover talk has increased the price of the club's shares by more than two thirds in the last three months. The club is now valued at around £600 million on the London stock market.

The Manchester United Supporters Trust said it was "uneasy" about the Cubic Expression Company's move.

Supporters Trust spokesman Oliver Houston said: "These guys are gamblers and currency speculators, so it is unlikely they are looking to make a slow and steady return on their investment over a 25-year period."

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