It appears the owners of football club Manchester United are in retreat over the price punters must pay when the stock goes on sale for the first time on Friday in New York.
The Glazer family had been targeting a price of between $16 and $20 per share for the flotation but after a few robust tackles from the US's hard nosed investment community, the price has been dropped to $14 per share.
The valuation for the club will still be around $2.3bn, which is higher than any rival, including the recently dominant Barcelona, although only about 10% of the total shareholding will be up for sale
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In its last financial results Man U's debts stood at $661m while Friday's flotation is expected to raise around $330m, of which only around half will be used to pay off lenders. This has angered fans, worried about the club's solvency and, more particularly, the club's ability to compete in the transfer market with its "noisy neighbours", Manchester City, a club munificently backed by Arab oil money.
Despite the share sale the Glazer family will retain an iron grip on the club because the new "A" shares will only have one tenth the voting power of their "B" shares.
BS
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
