United to appeal to takeover body

Manchester United is seeking an urgent meeting with Malcolm Glazer

Manchester United is to ask the Takeover Panel to clarify the company's position regarding a potential takeover approach by US tycoon Malcolm Glazer.

David Gill, Manchester United's chief executive, is expected to contact the City regulator on Monday in the wake of events at the club's AGM on Friday.

At the meeting, Mr Glazer used his 28.1% stake in the club to block the re-appointment of three United directors.

United will say uncertainty about Mr Glazer's plans is damaging the company.

Seeking clarification

The company is also seeking a "clear the air" meeting with Mr Glazer and the company's largest single investor, Irish duo JP McManus and John Magnier.

The businessmen abstained in a crucial vote over the reappointment of three United directors - Philip Yea, Maurice Watkins and Andy Anson - at the AGM, effectively allowing Mr Glazer to veto their reappointment.

Following Friday's meeting, Manchester United called on the Glazer family to clarify its intentions towards the company and said it wanted to bring the situation to a head as soon as possible.

The Takeover Panel is the regulatory body that administers takeovers and mergers in the UK.

It has a responsiblity for ensuring all shareholders are treated equally in any takeover process.

It is unclear what action the panel could take regarding Manchester United given that the company is not currently the subject of an official takeover approach.

Malcolm Glazer blocked the reappointment of three directors

This would govern the amount of time that any potential suitor has to conclude a takeover.

Long term solution

However, Manchester United is still hoping it can persuade the panel to intervene.

"We cannot ask the panel to ask Malcolm Glazer to put up or shut up," a source close to the company said. "But we can ask it to clarify some of the issues involved."

Manchester United is seeking talks with Mr Glazer as soon as possible amid reports that he is looking to call an emergency general meeting with a view to installing a director of his own choosing on the United board.

Such a move would require the support of 75% of investors.

"We have got to sit down and get a sensible, long-term solution to this problem," said a source close to United.

Raising the stakes

Mr Glazer suffered a blow on Saturday when it emerged that investment bank JP Morgan, the tycoon's main financial backer, had withdrawn its support.

Keith Harris, a football finance expert, said he believed Mr Glazer's takeover ambitions were unlikely to succeed.

Mr Harris, who is working on proposals to help fans' groups increase their stakes in the club, said banks would be relucant to fund a hostile takeover bid.

"I don't believe he will [take over the club] unless he's got a pot of gold that none of us has had any sight of," Mr Harris told the BBC.

Mr Glazer has been stalking Manchester United for more than eighteen months.

He raised the stakes last month by making an indicative takeover approach for the club.