A key part of the #MUFC sale process will be how the Glazers react if their desired price isn’t met. Sources suggest there is no unified approach within the family and won’t be until after offers come in. 
The expected Qatar bid will be led by a private fund and it’s not anticipated it (or any other February 17 offer) will be as high as £6bn. But it’s been described as “strong and still a work in progress”. Complicated and high-level talks have taken place to even get it this far.
Multiple insiders have claimed for weeks that bids between £3.5bn-£4.5bn are what many groups think competitive, including Sir Jim Ratcliffe, who may even fall below the lower end of that bracket. Even after a huge share boost #MUFC’s market valuation is £3.2bn.
Buzz around bidders raises the share price and this is an intentional sales tactic to drive up the price.
In this context, the #CFC sale price (£2.3bn) is seen as fantastic value to the Glazers by many financial experts, but the #MUFC owners ultimately want three times that if they can get it. Should they not that’s when different family members must align.
The advantage to the Glazers of Qatar (& possibly Saudi) bidding is value will be placed on the benefit of using the #MUFC brand to fulfil the government’s sports strategy and ensure a post-World Cup legacy. This could mean a desire to pay more due to far broader areas of return.
There are also many variables in valuation, some of which can’t be addressed until later in the process when further due diligence is undertaken. That’s when suitors who progress can more accurately value #MUFC’s numbers.
It’s very normal for prices to change anyway once proper due diligence is done and even based on how #MUFC fare over the coming months. The Chelsea sale price also changed slightly right at the end.
With Friday 17th just a soft deadline, and various groups (15-20) who have enquired not all likely to bid, Raine, who are handling the sale, will be hoping for at least 2-3 strong bids to move the process forward fast.
But even with an urgent takeover like Chelsea, and a timescale the UK Government dictated, deadlines still got pushed, so they shouldn’t be viewed too rigidly.
As reported last week, suitors must submit written confirmation of their offer and proof of funds. It’s a simple process to establish who is credible.
Qatar are braced for a rival Saudi bid and there has already been a private sector enquiry. But it remains to be seen at this stage whether an offer materialises. Suitors don’t want to show their hand too early.
Away from MENA, still keep an eye on US investors. As I have said many times this entire process is to a large extent designed by Americans for Americans and I would expect a credible North American suitor to emerge.
*In this context, twice the Chelsea sale price is seen as fantastic value…
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