Irish Tycoons Lift Man Utd Stake

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Irish tycoons lift Man Utd stake

JP McManus and John Magnier are demanding changes at the club

Irish businessmen John Magnier and JP McManus have upped the ante in their feud with Sir Alex Ferguson by buying yet more Manchester United shares.

Their latest purchase means that their investment company, Cubic Expression, now holds 28.89% of the shares in the English Premiership club.

The BBC's business editor Jeff Randall described the move as "as near as you can get to parking your tanks on somebody's lawn".

It is the latest twist in the dispute.

Growing seemingly ever more acrimonious, it centres around a disagreement over a race horse.

Cubic Expression's latest Manchester United shares are thought to have been bought from media tycoon John de Mol.

The 28.89% of shares in the football club that Mr Magnier and Mr McManus now control is just less than the 29.9% threshold above which an offer to buy out the club's other shareholders would have to be made.

Bitter feud

The Irish pair have been steadily building their stake in Manchester United in recent months, which led to speculation over the future of United manager Sir Alex Ferguson.

Sir Alex has fallen out with his former friend, Mr Magnier, over stud rights to the champion racehorse, Rock of Gibraltar.

Sir Alex could find things so uncomfortable that eventually he has to go

Michael Crick

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The Manchester United boss is suing Mr Magnier, demanding half the stud fees, which could be worth up to £100m in future years.

Meanwhile, as the Cubic Expression investment vehicle has raised its stake in Manchester United, it has been demanding an investigation into all financial aspects of the club, particularly transfer fees and the use of agents.

Mr Magnier and Mr McManus have always maintained that they have bought their shares as an investment and do not want to take over the club.

However, the size of their stake will allow them to demand several representatives on the company's board.

Analysts expect them to go ahead with this move.

Uncomfortable

Manchester United shareholder Michael Crick, who has written a book about the club, told the BBC: "In effect they have already taken over the club.

"With 29% of the shares no chief executive of Manchester United, no finance director is going to oppose what they recommend."

Mr Crick said he believed the latest move would also restrict the way in which Sir Alex operated.

"He could find things so uncomfortable... that eventually he has to go," he said.

Manchester United shares ended Wednesday 1.6% higher at 465.25 pence.

'Shadows'

This gives the club a stock market value of about £700m.

Oliver Houston, spokesman for influential Manchester United fans group Shareholders United, attacked the latest share purchase by Mr Magnier and Mr McManus.

"These guys have already shown they are prepared to attack the club, its manager and its fans," he said.

"It is about time these guys stepped out of the shadows and told us what exactly they are intending to achieve."

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Ferguson focuses on title

Fans unite for Ferguson

Manchester United boss Sir Alex Ferguson insisted his bid to retain the Premiership title would not be affected by "off-field nonsense".

Ferguson is currently locked in a legal dispute with Irish horseracing tycoon John Magnier over the stud rights to Rock of Gibraltar.

"I'm determined nothing will interfere with my focus on my work," he said.

"Following all the off-field nonsense I am in good shape after the massive message of confidence from the fans."

Ferguson's pledge came on the same day that Magnier and his business partner J P McManus upped their stake in Manchester United.

Through their investment company, Cubic Expression, the duo raised their stake to 28.89% by buying shares from Dutch media tycoon John de Mol.

Irish tycoons lift Man Utd stake

Magnier and McManus would only need to hold 29.9% of the club to launch an automatic takeover bid.

But the pair are not thought to be interested in assuming outright control at Old Trafford.

Instead Magnier and McManus are understood to want three representatives on the United plc board.

That would allow the Irish duo to exert greater influence, not only on Ferguson's future at the helm, but in the running of the club as a whole.

It has also emerged that Ferguson met with influential Celtic and Manchester United shareholder Dermot Desmond this week.

Man Utd clinch Miller deal

Though the pair met to discuss Liam Miller's move to Old Trafford in the summer, the United boss is believed to have sought Desmond's advice on his dispute with Magnier.

Irishman Desmond is a close associate of Magnier.

It has emerged that Ferguson and Magnier are keen to settle the dispute as soon as possible and avoid the argument reaching Dublin's High Court.