Sky Sports News reports today that the Red Knights consortium has agreed terms of a formal offer to buy Manchester United. Rant expects the formal bid to the Glazer family in June. SSN reports that the group, led by Goldman Sachs Jim O’Neil, agreed the terms of their expected £1.2 billion bid, which will include the club’s £504 million bond debt.
The Knights meeting this week thrashed out both the size of the proposed bid and the terms under which each Knight will invest. Details of the meeting have not been released by the Knights but may include the expected return on investment, terms of exit and size of the bid.
The Glazer family has consistently maintained a stance that the club is not for sale, although few serious analysts believe this is true. However, United supporters are also concerned about how much leverage – if any – is included in the Knights bid with the bond likely to remain in place in the medium term.
No details have yet emerged of supporters’ stake in the club under a future Knights’ ownership.
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