Yep and they registered in the Cayumans to prevent hostile takeovers.GXCity said:They are never going to sell at a loss. they will hang on in there until they can at least make a profit otherwise it all would have been pointless for them
whyalwaysLee said:The Glazers have had offers for the club at 1.5billion and turned them down.
<a class="postlink" href="http://www.guardian.co.uk/football/2010/may/06/glazers-reject-secret-offer-manchester-united" onclick="window.open(this.href);return false;">http://www.guardian.co.uk/football/2010 ... ter-united</a>
IMO, they will sell up if this IPO goes tits up, and it's going tits up.
If the club is valued at 600 million, and the glazers owe 400 million, then someone could buy them for 1billion now, when the Glazers thought it was worth 2.2billion. They will still make their money, just well short of what they wanted.
Also, with the reduced valuation, it makes the club more affordable to consortiums from the Middle East or Asia.
right again dlbdenislawsbackheel said:a) we wouldn't get a work permit.
b) why when we've got Guidetti?
Doesn't make sense for them to do that.whyalwaysLee said:The Glazers have had offers for the club at 1.5billion and turned them down.
<a class="postlink" href="http://www.guardian.co.uk/football/2010/may/06/glazers-reject-secret-offer-manchester-united" onclick="window.open(this.href);return false;">http://www.guardian.co.uk/football/2010 ... ter-united</a>
IMO, they will sell up if this IPO goes tits up, and it's going tits up.
If the club is valued at 600 million, and the glazers owe 400 million, then someone could buy them for 1billion now, when the Glazers thought it was worth 2.2billion. They will still make their money, just well short of what they wanted.
Also, with the reduced valuation, it makes the club more affordable to consortiums from the Middle East or Asia.
OK I guess it's possible, but why would Utd oblige underwriters to buy shares after the offer, at $14? Doesn't serve any purpose as far as I can seePrestwich_Blue said:That's not the way it works though. In a liquid market, a large amount of shares on sale would tend to drive the price down until a buyer was found prepared ot pay that price. But if someone is prepared to buy those shares at a set price then this won't happen and that's what the underwriters have done. They contracted to support the price at the $14 level for a set time.Marvin said:Trouble is so many people spin the story. If the underwriters were forced to buy stock then that will exert downward pressure on the price as there will be an excess of supply waiting to come on to the market.Prestwich_Blue said:They did end up supporting the stock. It's in their contract. According to people in the know, there were a lot of attempts to short the stock (in expectation of a significant fall) and Jefferies had to keep buying to resist that. The story is that the selling pressure has abated for the moment but that the underwriters are left with a lot of stock.
As you say, that can only work for a short period and they'll have to slowly let that stock dribble out onto the market over time. It will be a couple of weeks or so before we see how the price really is and the 2012 results will probably impact it negatively.
samharris said:whyalwaysLee said:The Glazers have had offers for the club at 1.5billion and turned them down.
<a class="postlink" href="http://www.guardian.co.uk/football/2010/may/06/glazers-reject-secret-offer-manchester-united" onclick="window.open(this.href);return false;">http://www.guardian.co.uk/football/2010 ... ter-united</a>
IMO, they will sell up if this IPO goes tits up, and it's going tits up.
If the club is valued at 600 million, and the glazers owe 400 million, then someone could buy them for 1billion now, when the Glazers thought it was worth 2.2billion. They will still make their money, just well short of what they wanted.
Also, with the reduced valuation, it makes the club more affordable to consortiums from the Middle East or Asia.
Glazers wont let the golden goose go that easily...their yearly golden eggs have served them well..
No it depends on how many of those shares the underwriters have. If they own half them and they bomb then it makes a big difference. The underwriters will have all sorts of agreements in place for them to underwrite the ipo in the first place.Marvin said:After issuing the shares at $14, the day to day share price has no effect on their business, but if it falls a lot it would mean that the Glazers would find it very difficult to repeat this exercise.AntiUnited said:The Pink Panther said:Am I correct in thinking that even if shares are eventually traded at $5 this will not affect the Glazer's control?
All that will happen is less funds will be available to clear some of the debt and the Glazers will just have to take less that their expectation for their other activities, so they'll just be a bit more "jiggery pokery"
Means that they wont be able to generate the money ( they where expecting) to fund and service the debt which will quickly spiral out of control and Could possibly lead them to cash and bail out or do something extremely drastic. but atm its not looking good atm for them as a invest able product (lasting damage )
whyalwaysLee said:samharris said:whyalwaysLee said:The Glazers have had offers for the club at 1.5billion and turned them down.
<a class="postlink" href="http://www.guardian.co.uk/football/2010/may/06/glazers-reject-secret-offer-manchester-united" onclick="window.open(this.href);return false;">http://www.guardian.co.uk/football/2010 ... ter-united</a>
IMO, they will sell up if this IPO goes tits up, and it's going tits up.
If the club is valued at 600 million, and the glazers owe 400 million, then someone could buy them for 1billion now, when the Glazers thought it was worth 2.2billion. They will still make their money, just well short of what they wanted.
Also, with the reduced valuation, it makes the club more affordable to consortiums from the Middle East or Asia.
Glazers wont let the golden goose go that easily...their yearly golden eggs have served them well..
They will have no choice if the banks step in. It seems this IPO was abit forced already. Why float during a period of market instability, and in the US of all places? Maybe they are under pressure from the banks already. Well things just got worse.