Bidders for Manchester United have been told to stop running
public campaigns which could damage the Glazer family following the official
start of the race to take control of the club.
A statement from the Qatar bid in particular is understood
to have caused consternation among those running the process, with the promise
to return United to its “former glories” seen as implied criticism of the
present owners.
The confirmed bidders are a group led by Sheikh Jassim bin
Hamad bin Jaber Al Thani, chairman of one of the Emirate’s biggest banks and
Ineos, fronted by British billionaire Sir Jim Ratcliffe. It is understood there
is no bid from Saudi Arabia despite initial interest.
On Friday, the Qatari bid issued a detailed statement
outlining plans that were clearly designed to appeal to supporters
critical of the Glazer regime. This included the declaration that it would be a
“completely debt free” purchase following the controversies of the Glazers’
leveraged buyout.
The Qatar bid was not alone in issuing a statement timed to
coincide with Friday’s 10pm UK time “soft deadline” for opening bids. The Ineos
bid issued its own statement on Saturday morning in which it talked of “putting
the Manchester back into Manchester United” while investing “to make them the
number one club in the world once again”.
The Times
understands that has prompted Raine, the New York bank managing the sale for
the Glazers, to firmly remind bidders that the process is meant to be private,
having been required to sign comprehensive non-disclosure agreements as part of
the process.
It is not yet clear how many other groups have entered the
race to buy United. The main rivals to the Qatari and Ratcliffe bids are
expected to be private equity funds in the United States, with The Sunday Times reporting that US
hedge fund Elliott is linked to one offer.
This could be a bid for a minority stake or to fund other bidders.
Both known bids are thought to value United somewhere
between £4 billion and £5 billion, which the Glazers will hope to drive up.
While the Qatari bid is for the entire club, Ratcliffe’s Ineos offer is for
“majority ownership” by purchasing the Glazers’ 69 per cent stake, including
the Class B shares which carry the majority of the voting rights. Ratcliffe’s
group could then seek to pick up the rest of the shares once they have control.
United’s debt is understood to be around £570 million and
the Qatari bid claims it would immediately wipe the whole amount off the books.
Ineos has spoken to banks including JP Morgan and Goldman Sachs about possible
support, though the petrochemicals company insists that it will not load any
fresh debt onto the club and is seeking to run the club as a successful sporting
enterprise rather than a business.
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