Irish horseracing tycoons J P McManus and John Magnier have let it be known they have ruled out launching a takeover bid for Manchester United.
The two, who are currently at loggerheads with Sir Alex Ferguson over the ownership of the racehorse Rock Of Gibraltar, became Manchester United’s biggest shareholder last week after buying out BSkyB’s 9.99 per cent holding. Through their investment vehicle, Cubic Expression, the two paid pounds 62m for the stake and that, along with another 1.75 per cent bought on the open market, took their total holding up to 23.15 per cent.
The move contributed to frenzied takeover speculation but Mr McManus and Mr Magnier have remained tight-lipped, both to the City and the Manchester United board, about their intentions.
But it is understood that the duo have in fact ruled out launching a full-scale takeover of the club. Cubic first started investing in Manchester United in July 2001 and initially said it saw the business as a long-term investment opportunity. Despite the latest bout of stake-building, a source in Ireland says the tycoons’ opinions have not changed. “Nothing has changed in their attitude and the latest acquisition isn’t going to lead to an offer. They are value investors. It is as simple as that.”
Both men maintain a low profile, despite being well-known in racing circles – Mr Magnier is regarded as the most powerful figure in the bloodstock world due to his ownership of the Coolmore stud in Tipperary while Mr McManus owns more than 100 racehorses. Few in the City believe they would be happy taking on such a high profile business as Manchester United; and both have a reputation for building stakes in companies and not taking them over.
Their increased stake does, however, leave them in a strong position should a bidder for Manchester United come forward. In a busy few weeks for Manchester United shareholders, BSkyB and hedge fund Lansdowne Partners have sold holdings, while Jon de Mol, the Dutch television tycoon behind Big Brother and US investor Malcolm Glazer have increased their stakes. Mr de Mol has ruled out bidding but Mr Glazer, owner of the Tampa Bay Buccaneers US football team and Manchester United’s second-biggest shareholder with an 8.9 per cent stake, has remained silent on his intentions.
Other high-profile investors in Manchester United, which finished the week with a market value of pounds 609m, include Celtic chairman Dermot Desmond – who is a friend of Mr McManus and Mr Magnier – and mining millionaire Harry Dobson.
Analysis, page 5
