Man U bid on verge of collapse

MANCHESTER United shares tumbled as American tycoon Malcolm Glazer's £800m bid for control of the club teetered on the verge of collapse.

Talks between the billionaire - with 19.2% of Man U - and the two main shareholders are said to have broken down amid bitter recrimination and acrimony.

Between them the Irish race horse owners JP McManus and John Magnier own 29% of the Old Trafford outfit and are pivotal to Glazer's ambitions.

The pair are said to harbour grave doubts about Glazer's ability to fund a deal and were apparently angered by claims circulated by the American camp that they have agreed to sell their shares for £3 each.

Without the Irish duo's co-operation it is highly unlikely that Glazer will ever succeed in taking the reins at Man U. One source described the state of negotiations as 'fluid and volatile'.

Shares tumbled 9 1/2p, or 3%, to 264p, valuing United at £717m.

If Glazer decides to shelve his interest in Man U, it will come as a massive relief to supporters who are set to picket the offices of Brunswick, the City public relations agency acting for the American businessman. Their London offices were last week targeted by irate fans who ordered pizzas and skips to be delivered there.

Separately, Man U chief executive David Gill was paid almost £1m last year. His basic salary of £435,000 was boosted by a £270,000 cash bonus, shares worth £185,000 and other undisclosed benefits of £19,000. It almost doubles the £507,000 he made in 2002.

The company's annual accounts show he cashed 400,000 share options at a profit of £284,000.

In the now increasingly unlikely event of a takeover at Old Trafford, the Man U boss could net as much as £1m in compensation if he is then put out of a job.