Bank hits Glazer Man Utd plan

Manchester United have asked Glazer to clarify his position

Malcolm Glazer's bid to buy Manchester United was dealt a serious setback after the American's bankers JP Morgan dropped him as a client.

Earlier, three United directors lost their seats on the Old Trafford board in a bitter twist to the takeover saga.

Legal adviser Maurice Watkins, new commercial director Andy Anson and non-executive director Philip Yea all had their re-elections blocked.

Glazer cast his 28.11% stake against their appointments at the club's AGM.

United recently ended talks with Glazer over his bid to gain control at Old Trafford.

Investment bank JP Morgan, who were thought to be crucial to the US tycoon's takeover bid, are reported to be unhappy at Glazer's boardroom coup.

TAKEOVERS EXPLAINED In a friendly takeover, the management teams of the bidding and target companies negotiate the terms of the deal A takeover is deemed hostile when the target company's board objects to the deal The bidder attempts to win control of the company by going direct to the shareholders The bidder offers to buy shares for more than the market price If the bidder fails to win control, the offer is rescinded

Manchester United have now asked Glazer to clarify his intentions amid rumours of a possible hostile takeover.

The tycoon's actions at the AGM were aided by the abstention of majority shareholders Cubic Expression, with most City institutions following suit.

Chief executive David Gill had recommended that all three men should remain in position.

A statement from Manchester United plc claimed their ousting was "principally a result of The Glazer Family Partnership ('Glazer Family') voting against the resolutions.

"The board are very disappointed with this outcome as we do not believe it is in the best interests of the company.

"Our focus as a board will continue to be on running the business and we will be discussing with our advisers over the next few days our response to the failure of these resolutions."

Man Utd eye pay-as-you-play

While Watkins, an Old Trafford board member for more than 20 years, and Anson can continue their work for the club, neither can be directly involved in key decisions.

Yea may be forced to sever his ties completely.

It leaves United in a chaotic situation and weakens Gill who, along with finance director Nick Humby, is one of only two executive directors still on the board.

BBC Business Editor Jeff Randall believes the events of Friday at Old Trafford has not helped Glazer's cause.

"The board should not flinch one iota from the decision [to end talks with Glazer] which was 100% correct Statement by Shareholders United

"He has acted in such an irresponsible way, nothing positive is going to come out of this," Randall told Radio Five Live.

"Getting rid of the three directors hasn't changed anyone's position, it just makes the club a little bit more difficult to manage.

"I don't think he's taken a step forward in buying Manchester United. He's got to think 'I've got all that money tied up in the club, how do I get it out without losing a big chunk."

Glazer has recently spent £65m raising his stake from 19.1% to 28.11%.

United fans' groups have publicly opposed a takeover by Glazer, who owns the NFL's Tampa Bay Buccaneers.

Shareholders United, who have campaigned against Glazer's involvement, said the club should stand firm.

Watkins has lost his place on the board

"We hope the board will not waver in their decision to knock back Malcolm Glazer's bid," said SU spokesman Oliver Houston.

"That decision was based on sound financial principles. It would have plunged the club into debt and was clearly not in the best interests of the existing shareholders.

"Malcolm Glazer has now thrown his toys out of the pram but no-one should be surprised. This is how he behaves.

"He doesn't do dialogue, compromise or openness. He wants to ride roughshod over Manchester United."