Man-ing The Battle Stations Against Takeover Bids

Seymour Pierce Chair Keith Harris "has been knocked back" in his attempt to form a group to bid for Manchester United, according to Goodman & Bond of the LONDON TIMES, who reported the investment banker "has failed to find backing despite approaching a number of financial institutions." Harris' plans are now "likely to be put on hold" until after the coming season. Last week, Harris played "a key role" in Russian billionaire Roman Abramovich's deal to buy Chelsea football club (LONDON TIMES, 7/6). Also in London, Mark Court reported that Irish entrepreneurs J.P. McManus and John Magnier are "preparing to sell their 10.37[%] stake" in ManU, which is held through their company, Cubic Expression. The stake has a market value of almost US$66.7. The sale comes after "a professional rift" between the two and ManU Manager Sir Alex Ferguson, which is believed to stem from the club paying US$48.4 for D Rio Ferdinand last summer. The duo is said to be "looking for a significant premium to the market price for the shares" (LONDON TIMES, 7/4).

CHELSEA: In Toronto, Paul Waldie reported the British government has "launched an investigation" into Abramovich's business ties, and that the London Stock Exchange is "examining trading in Chelsea shares in the days before the offer." Canadian accountant Eugene Tenenbaum is part of Abramovich's $98.5M bid for Chelsea, which is the largest in British soccer history (GLOBE & MAIL, 7/4). Shares of ManU and Aston Villa climbed this morning on speculation that Abramovich's offer "will spark further takeovers of soccer clubs." As of 11:20am in London, shares of ManU were up 5%, to US$2.54, and Aston Villa rose 8.3%, to US$2.62, a 14-month high. A London Daily Express report stated that ManU "is 'on red alert' for a hostile bid from 'another mega-rich' Russian" (BLOOMBERG NEWS, 7/7).