Oliver Houston
10th January 2004, 00:30
DAVID GILL TO FACE UNITED FANS AND SHAREHOLDERS ON TAKEOVER THREAT
Manchester United chief executive David Gill is to face a meeting of United fans and shareholders on Sunday 11th January at 2.00pm before United's home game against Newcastle. Gill will be joined by Communications Director Paddy Harverson and the man set to replace him, Phil Townsend.
Top of the fans' agenda will be the takeover speculation that continues to swirl around the club, following the revelation that Russian oil tycoon Ralif Safin may be poised to make a bid and the continuing uncertainty over the intentions of major shareholders Cubic Expression and Malcolm Glazer.
The meeting will be hosted by Shareholders United (SU), the Manchester United Supporters' Trust, who successfully campaigned against the bid by Rupert Murdoch's BSkyB five years ago. At the plc AGM on November 13th, SU elicited from David Gill the statement that United didn't want or need a "Sugar Daddy" and the commitment from plc chairman Sir Roy Gardner that the Board would work with SU to explore ways to establish mechanisms to ward off any such unwanted bids.
The Board have since held a productive meeting with SU's officers to discuss their plans and David Gill has given an interview to SU's newsletter, United Shareholder, (distributed to thousands of United fans in over 45 countries around the world from Australia to Zambia) in which he talks about potential takeovers, the departure of Peter Kenyon and the rift between Sir Alex Ferguson and John Magnier, and says:
"We are monitoring the situation carefully and, yes, it [a bid] is always a possibility. It would be naïve to say that the increase in the share price from 90p to £2.40 is all based on the back of results and the changes in football. If something comes we will have to address that situation, but I wouldn't want you to think we haven't discussed it, analysed it both internally and with our advisers. We have run models to look at what we believe the club is worth, how a buyer might structure it, what would be their return, their financial criteria. We've analysed it from both our perspective and the perspective of a prospective bidder.
"The obligations on the Board are to make sure it is in the best interests of the company, so it is not just a financial analysis. United has so many strengths and so many assets. We don’t need and don't want a sugar daddy to come in. If someone came in with a knockout financial bid then we as directors have individual responsibility to consider it. We would possibly have to put it to shareholders, but it is up to individual directors whether the Board put it to shareholders with a recommendation or without."
On the subject of Malcolm Glazer and his sons, who hold around 15% of the shares and have a history of bidding for big-name companies, Gill says:
"They think it is a good investment, as they thought was the case with the Tampa Bay Buccaneers back in 1995. It's a good investment full stop." [This, however, by no means precludes them attempting a takeover!]
On the subject of Cubic Expression, who hold around 25% of the shares, Gill says of the dispute between John Magnier and Sir Alex Ferguson:
"Alex is conscious that he needs to keep us informed of developments and how, if at all, it may impact on his job. We are not complacent but at the moment I don't think there is any impact whatsoever."
Gill also flatly denies that Cubic have used their shareholding to influence the board in any respect, whether in Sir Alex's contract negotiations or in any other way.
Peter Kenyon attended a similar Question & Answer session with SU members just days before announcing he was leaving United for Chelsea. Gill says of his own loyalty to the club and the initial offer made to him to join United that:
"It gave me the opportunity to get into something that I really loved. If any other club had been there I wouldn't have moved [from First Choice holidays]. It was United or no-one. I've been approached by other clubs since and I've not taken the bait."
Notes to Editors:
The Q&A meeting will be held at 2.00pm in the Norseman Room of Samuel Platts pub, Trafford Wharf Road (near Old Trafford's North Stand). The meeting is open to all SU (and IMUSA) members and is expected to last one-and-a-half hours.
Shareholders United is the country's largest Supporters' Trust, with thousands of members in over 45 countries.
17% of the shares in Manchester United plc are held by individual shareholders, the vast majority of whom are fans who invested for sentimental reasons and to have a say in how their club is run.
Shareholders United runs a share scheme whereby those who aren't existing shareholders can join, as they get a free share with their £10 annual membership fee. SU members can then make regular monthly purchases through a cheap collective share-buying scheme. The shares remain the property of individual members, but are held in a collective account and voted (on a one-member-one-vote basis) in a single bloc at plc AGMs.
Manchester United chief executive David Gill is to face a meeting of United fans and shareholders on Sunday 11th January at 2.00pm before United's home game against Newcastle. Gill will be joined by Communications Director Paddy Harverson and the man set to replace him, Phil Townsend.
Top of the fans' agenda will be the takeover speculation that continues to swirl around the club, following the revelation that Russian oil tycoon Ralif Safin may be poised to make a bid and the continuing uncertainty over the intentions of major shareholders Cubic Expression and Malcolm Glazer.
The meeting will be hosted by Shareholders United (SU), the Manchester United Supporters' Trust, who successfully campaigned against the bid by Rupert Murdoch's BSkyB five years ago. At the plc AGM on November 13th, SU elicited from David Gill the statement that United didn't want or need a "Sugar Daddy" and the commitment from plc chairman Sir Roy Gardner that the Board would work with SU to explore ways to establish mechanisms to ward off any such unwanted bids.
The Board have since held a productive meeting with SU's officers to discuss their plans and David Gill has given an interview to SU's newsletter, United Shareholder, (distributed to thousands of United fans in over 45 countries around the world from Australia to Zambia) in which he talks about potential takeovers, the departure of Peter Kenyon and the rift between Sir Alex Ferguson and John Magnier, and says:
"We are monitoring the situation carefully and, yes, it [a bid] is always a possibility. It would be naïve to say that the increase in the share price from 90p to £2.40 is all based on the back of results and the changes in football. If something comes we will have to address that situation, but I wouldn't want you to think we haven't discussed it, analysed it both internally and with our advisers. We have run models to look at what we believe the club is worth, how a buyer might structure it, what would be their return, their financial criteria. We've analysed it from both our perspective and the perspective of a prospective bidder.
"The obligations on the Board are to make sure it is in the best interests of the company, so it is not just a financial analysis. United has so many strengths and so many assets. We don’t need and don't want a sugar daddy to come in. If someone came in with a knockout financial bid then we as directors have individual responsibility to consider it. We would possibly have to put it to shareholders, but it is up to individual directors whether the Board put it to shareholders with a recommendation or without."
On the subject of Malcolm Glazer and his sons, who hold around 15% of the shares and have a history of bidding for big-name companies, Gill says:
"They think it is a good investment, as they thought was the case with the Tampa Bay Buccaneers back in 1995. It's a good investment full stop." [This, however, by no means precludes them attempting a takeover!]
On the subject of Cubic Expression, who hold around 25% of the shares, Gill says of the dispute between John Magnier and Sir Alex Ferguson:
"Alex is conscious that he needs to keep us informed of developments and how, if at all, it may impact on his job. We are not complacent but at the moment I don't think there is any impact whatsoever."
Gill also flatly denies that Cubic have used their shareholding to influence the board in any respect, whether in Sir Alex's contract negotiations or in any other way.
Peter Kenyon attended a similar Question & Answer session with SU members just days before announcing he was leaving United for Chelsea. Gill says of his own loyalty to the club and the initial offer made to him to join United that:
"It gave me the opportunity to get into something that I really loved. If any other club had been there I wouldn't have moved [from First Choice holidays]. It was United or no-one. I've been approached by other clubs since and I've not taken the bait."
Notes to Editors:
The Q&A meeting will be held at 2.00pm in the Norseman Room of Samuel Platts pub, Trafford Wharf Road (near Old Trafford's North Stand). The meeting is open to all SU (and IMUSA) members and is expected to last one-and-a-half hours.
Shareholders United is the country's largest Supporters' Trust, with thousands of members in over 45 countries.
17% of the shares in Manchester United plc are held by individual shareholders, the vast majority of whom are fans who invested for sentimental reasons and to have a say in how their club is run.
Shareholders United runs a share scheme whereby those who aren't existing shareholders can join, as they get a free share with their £10 annual membership fee. SU members can then make regular monthly purchases through a cheap collective share-buying scheme. The shares remain the property of individual members, but are held in a collective account and voted (on a one-member-one-vote basis) in a single bloc at plc AGMs.