Man Utd rejects Glazer plan

MANCHESTER United today dramatically rejected the advances of Malcolm Glazer, the US sports boss who is mulling an £825m bid for the football club.

In a statement to the Stock Exchange, the board cast doubt on Glazer's attempt, through a family company, to mount a bid using large quantities of debt. Manchester United said it believed its current capital structure was appropriate for a football club.

'Accordingly, the board has determined that it would not support any offer underpinned by the structure which has been outlined in relation to the Glazer family's potential offer,' it said.

The board added that it had ended discussions with the Glazer family vehicle, which only last week upped its stake in the club to 28.1% after buying 1.3m shares at 285p.

This is the second blow for Glazer after it also emerged that he has so far failed to offload his Florida homes as well as some of his commercial real estate holdings to help raise funds for a possible tilt at the club. There have been no takers for Glazer's two Palm Beach mansions, which he values at $49m (£27m).

Nor has the owner of the Tampa Bay Buccaneers gridiron team been able to sell an estimated $700m in shopping centre developments owned by First Allied Corp, Glazer's real estate investment company. Although Glazer is estimated to be worth more than $1bn, questions keep being raised about his ability to pay for Manchester United.

Much of his wealth is tied to his ownershipof the Buccaneers. Today's news appears to confirm speculation that Glazer will load up with debt to take a tilt at the currently debt-free Manchester United, and that loans to finance the takeover could then be guaranteed against the club's assets.

It is estimated he may personally need to put up no more than a fifth of the expected £800m cost of the takeover.

Glazer is asking $29.5m for La Bellucia, a 1920s Mediterranean-style residence designed by Addison Mizner. The site on South Ocean Boulevard has four acres of land on the Atlantic Ocean and is within walking distance of Donald Trump's Mar-a-Lago Club.

The two-storey main house has five bedrooms, six bathrooms and marble and hardwood floors. There is a separate two-storey guest house/staff quarters and a garage and gatehouse. There is also room for a tennis court.

Glazer paid just $14m for the property in summer 2000. He does not live in La Bellucia but in a 14,270-square-foot house on the same road.

This property has been on the market for several months with an asking price of $19.5m. Glazer bought it in 1989 for $2.5m.

His neighbours on what is known as Billionaires' Row include Rod Stewart, Revlon's Ron Perelman and Netscape founder James Clark.