British billionaire Jim Ratcliffe is reportedly revising his offer to acquire Manchester United Plc in an effort to overcome the ongoing stalemate in the takeover negotiations. According to sources familiar with the matter, Ratcliffe is working closely with his advisors to address concerns raised by minority investors regarding the terms of his bid for the English Premier League football club.
Ratcliffe initially proposed acquiring the 69% stake in Manchester United currently held by the US Glazer family, leaving little benefit for other shareholders, including Lindsell Train, Ariel Investments LLC, and Eminence Capital. Bloomberg previously reported that one of the club's top three shareholders sent a letter to the board warning of potential lawsuits against independent directors if they recommended a bid that favored one group of shareholders over another.
News of Ratcliffe's revised offer has prompted a surge in Manchester United's stock price, with shares jumping as much as 3.6%. The current stock price values the club at $3.2 billion. However, representatives for Ratcliffe and Manchester United have declined to comment on the matter.
Ratcliffe faces competition from a Qatari investor group led by Sheikh Jassim bin Hamad al-Thani, as they both vie for ownership of the team. Both proposals are still under consideration by the club, along with the possibility of a minority stake sale.
The bidding process has been protracted, with the Glazer family conducting a strategic review of their ownership of Manchester United almost a year ago. Progress has been slow due to the varying interests of stakeholders involved, and neither Ratcliffe nor the Qatari group have met the Glazers' price expectations so far.
While the Qatari investors seek to buy the club outright, Ratcliffe's previous offer would allow some members of the Glazer family, such as Joel and Avram Glazer, to maintain their investment in Manchester United. However, this potential scenario is likely to anger some supporters of the club who have blamed the Glazers for the team's underperformance in recent years and have been vocal in calling for their departure from the club.
Ratcliffe, who is a lifelong Manchester United fan, expressed his keen interest in the club and confidence in his bid at a media event in July. He stated, "We have a good offer. We still would very much like to do it, and I think we would do a good job if we did."
The bidding process for Manchester United has generated a flurry of reports, ranging from potential front-runners to rumors about the Glazers withdrawing the club from the market, leading to significant fluctuations in the stock price of the UK-based club.
Ratcliffe has secured financing from banks like Goldman Sachs, while JPMorgan Chase, Rothschild & Co., and Bank of America are among the other institutions offering advice and capital for the potential deal.
It is worth noting that Ratcliffe already owns French football club OGC Nice, and his recent appearance in the team's dressing room celebrating their victory over local rivals AS Monaco further demonstrates his passion for football ownership.