Connect with us

Published

on

The Ineos billionaire Sir Jim Ratcliffe remains the leading candidate to buy Manchester United Football Club despite an inconclusive board meeting held late last week.

Sky News understands that directors of the Premier League club’s holding company met on Thursday to discuss the progress of its £5bn-plus auction.

Controlled by members of the Glazer family but also comprising a number of independent directors, the board was updated on the sale process by Raine, the merchant bank advising Manchester United.

A source close to the auction said the directors did not opt to enter into exclusive negotiations with either Ineos Sports or its principal rival, the Qatari businessman Sheikh Jassim bin Hamad al Thani.

Sir Jim is proposing to buy a majority stake in the Red Devils which would leave two of the Glazers involved, while Sheikh Jassim wants to buy the club outright.

The source said that Ineos remained the “leading” bidder despite a further, improved offer from the Nine Two Foundation – Sheikh Jassim’s bid vehicle – earlier this month.

Nevertheless, a further proposal remains possible, with a signed deal with either bidder said to be unlikely prior to United’s FA Cup Final against local rivals Manchester City next weekend.

Sir Jim’s takeover proposal includes ‘put and call’ arrangements that would allow him to buy the Glazers’ remaining shares after three years.

Ineos’s bid is said to value the whole of United at somewhere between £5bn and £5.5bn.

Ineos chairman Jim Ratcliffe arrives for the annual Red Cross Gala in Monte Carlo, July 18, 2022. REUTERS/Eric Gaillard

The Glazers have owned Manchester United since buying it for just under £800m in 2005 – an 18-year tenure marked by protests and a conspicuous dearth of trophies since the retirement of Sir Alex Ferguson, its former manager.

The Red Devils did win their first trophy for six years by beating Newcastle United in this season’s Carabao Cup Final.

In addition to the two proposals which would trigger a change of control, the Glazers have also received at least four credible offers for minority stakes or financing investment in the club.

These include an offer from the giant American financial investor Carlyle, Elliott Management, the American hedge fund which until recently owned AC Milan, and Sixth Street, which recently bought a 25% stake in the long-term La Liga broadcasting rights to FC Barcelona.

These investors’ proposals would provide capital to allow United to revamp the ageing infrastructure of its Old Trafford home and Carrington training ground.

Sky News exclusively revealed last November the Glazer family’s plan to explore a strategic review of the club its members have controlled since 2005, kicking off a six-month battle to buy it.

At a valuation of £5bn or more – which is below the Glazers’ rumoured asking price – a sale of Manchester United would become the biggest sports club deal in history.

Part of the justification for such a valuation resides in potential future control of the club’s lucrative broadcast rights, according to bankers, alongside a belief that arguably the world’s most famous sports brand can be commercially exploited more effectively.

United’s New York-listed shares have gyrated wildly during the process amid mixed views about whether a sale of the club is likely.

On Friday, they closed down at $18.97, giving the club a market valuation of just under $3.1bn.

Fury at its participation in the ill-fated European Super League crystallised supporters’ desire for new owners to replace the Glazers, although any sale to state-affiliated Middle Eastern investors would – like Newcastle United’s Saudi-led takeover – not be without controversy.

Confirming the launch of the strategic review in November, Avram and Joel Glazer said: “The strength of Manchester United rests on the passion and loyalty of our global community of 1.1bn fans and followers.

“We will evaluate all options to ensure that we best serve our fans and that Manchester United maximizes the significant growth opportunities available to the club today and in the future.”

The Glazers listed a minority stake in the company in New York in 2012 but retained overwhelming control through a dual-class share structure which means they hold almost all voting rights.

A Manchester United spokesman declined to confirm that a board meeting had taken place.

Continue Reading

Business

Direct trains from UK to Germany ‘one step closer’, but nothing yet on journeys to Berlin

Published

on

By

Direct trains from UK to Germany 'one step closer', but nothing yet on journeys to Berlin

The UK has come a “step closer” to having direct, high-speed rail connections to Germany, the Department for Transport has said.

A partnership between international train operator Eurostar and German national rail company Deutsche Bahn (DB) has “set the foundation” for a fast rail connection between Britain and Europe’s largest economy, the businesses announced on Thursday.

It means the companies are exploring options to offer direct services between London and Cologne and Frankfurt.

Money blog: Major airport increasing drop-off charge

Such direct services would mean reaching Cologne in four hours, and Frankfurt in less than five from the capital city.

At present, rail passengers have to change trains in Brussels to reach those cities. It takes at least five-and-a-half hours to reach Frankfurt, and four-and-a-quarter hours to arrive in Cologne.

Cologne Central Station could soon be served by trains from the UK. Pic: AP
Image:
Cologne Central Station could soon be served by trains from the UK. Pic: AP

The proposed services would use existing lines and infrastructure. Passengers would board a double-decker Eurostar in London, and be spared a change of trains on the continent.

More on Eurostar

The ambition to create such links had already been announced, as had a plan to allow direct rail travel from London to Geneva, but the partnership between DB and Eurostar had not.

Will it definitely happen?

Details and technicalities are yet to be worked out, with the German train company highlighting that any services are contingent upon “the necessary technical, operational, and legal prerequisites being met”.

“Implementation by individual railway companies is considered extremely difficult,” DB said.

“Joint partnerships are therefore crucial.”

What about Berlin?

Nothing was announced for a direct service to Berlin on Thursday, despite Transport Secretary Heidi Alexander singling out the benefits and prospect of journeys from London to the German capital in July.

“The Brandenburg Gate, the Berlin Wall and Checkpoint Charlie – in just a matter of years, rail passengers in the UK could be able to visit these iconic sights direct from the comfort of a train, thanks to a direct connection linking London and Berlin,” she said at the time.

A high-speed Eurostar train heading towards France. File pic: PA
Image:
A high-speed Eurostar train heading towards France. File pic: PA

Shorter journeys, like those to Frankfurt and Cologne, are seen as more commercially viable than the current 10-hour train journey time to Berlin.

Market studies conducted by Eurostar found travellers are comfortable with international rail journeys of up to six hours.

“Our research indicates that many would choose rail over air for trips within this timeframe,” Eurostar told Sky News. “This, combined with strong business and leisure demand on this route, is why we have prioritised London to Frankfurt.”

Read more from Sky News:
Petrofac administrators eye North Sea sale by Christmas
Submarine hunting pact signed by UK amid Russian threat

The Department for Transport said the focus on the two German cities was a commercial decision by Eurostar and DB, and the UK-Germany rail taskforce, established over the summer, could pave the way for further route announcements.

Continue Reading

Business

Energy grid £28bn upgrade to add £108 to household bills

Published

on

By

Energy grid £28bn upgrade to add £108 to household bills

The energy regulator has confirmed plans for a massive upgrade to the UK’s energy grids, adding £108 to customer bills by 2031.

Ofgem said on Thursday that the £28bn investment over the next five years would bolster resilience in the transition to a renewable energy future and that much of the bill would be offset by increased efficiency.

It pointed to estimated savings for households of around £80 because of the planned investment in gas and power infrastructure, leaving a net additional contribution of £28.

Money latest: Is property still a good investment?

Ofgem said the £28bn sum formed part of an estimated £90bn to be invested in the energy networks by 2031, with “adaptive” funding arrangements helping to shield customers from volatility in the market.

Most of the funding announced on Thursday will go towards maintaining gas networks, which will remain a key source of energy as green power capacity is built up further.

“Investing now to maintain world-class resilience and expand grid capacity is the most cost-effective way to harness clean power, support economic growth and protect the country from gas price shocks like the one seen in 2022”, Ofgem said.

More from Money

Please use Chrome browser for a more accessible video player

What’s driving energy prices higher?

Then, Russia’s invasion of Ukraine and Europe’s refusal to buy Russian gas in response, meant that energy bills hit unprecedented levels and gave birth to the wider cost-of-living crisis as higher energy costs were passed on across the economy.

Read more: Paying up front for energy future should lead to tangible savings

Ofgem made its announcement as costs of government energy policy and other upgrades make the biggest upwards contributions to household bills. However, the budget moved to take away some costs from April next year.

Ofgem boss Jonathan Brearley said: “The funding announced today will keep Britain’s energy network among the safest, most secure and resilient in the world. The investment will support the transition to new forms of energy and support new industrial customers to help drive economic growth and insulate us from volatile gas prices.

“But this is not investment at any price. Every pound must deliver value for consumers. Ofgem will hold network companies accountable for delivering on time and on budget, and we make no apologies for the efficiency challenge we’re setting as the industry scales up investment.

“We’ve built strong consumer protections into these contracts, meaning funds will only be released when needed and clawed back if not used. Households and businesses must get value for money, and we will ensure they do.”

Please use Chrome browser for a more accessible video player

‘It’s either keep warm or eat’

A Department for Energy Security and Net Zero spokesperson said: “This government is taking action to bring down energy bills for families, with the budget taking an average £150 of costs off bills in April, and expanding our £150 Warm Home Discount to over six million families.

“Upgrading our gas and electricity networks after years of underinvestment is essential to keep the lights on and ensure energy security for our country. Without these plans, which were first set out under the previous government, costs would spiral and our security would be compromised.

“The only way to bring down bills for good and get off the fossil fuel rollercoaster is with this government’s mission to deliver clean homegrown that we control.”

Continue Reading

Business

Stronger reforms called for over baby formula crisis

Published

on

By

Stronger reforms called for over baby formula crisis

The UK government is being urged to take even stronger action to tackle the ongoing crisis of families unable to afford baby formula milk. 

The prime minister backed limited reforms to the market to help parents save money but will not yet support more radical changes.

Sir Keir Starmer confirmed support for better public health messaging to inform parents that cheaper brands are nutritionally equivalent when compared with the most expensive.

A ban on spending store loyalty points on baby formula will also be lifted.

They were among recommendations made by the Competition and Markets Authority which investigated the baby formula industry and described the price rises in recent years as unjustifiable.

A newborn. File Pic: iStock
Image:
A newborn. File Pic: iStock

In the House of Commons the prime minister said: “For too long parents have been pushed into spending more on infant formula.

“They were told they’re paying for better quality and left hundreds of pounds out of pocket.

More from UK

“I can announce today that we’re changing that. We will take action to give parents and carers the confidence to access infant formula at more affordable prices, with clearer guidance for retailers on helping new parents use loyalty points and vouchers together.”

It comes two-and-a-half years after a Sky News investigation revealed the extreme measures families were taking to feed their babies.

Please use Chrome browser for a more accessible video player

Rising cost of baby formula has hidden dangers

Read more:
Affordability of formula milk a ‘constant’ pressure
Genetics testing start-up offers to ‘genetically optimise’ would-be parents’ babies

Parents described how they had resorted to stealing to feed their infants, some were watering down formula milk or substituting it for condensed milk.

The British Pregnancy Advisory Service described the situation in 2023 as a “national scandal”.

Campaigners told Sky News the UK government needed to go further to address the crisis.

Co-founder of Feed UK Erin Williams told Sky News: “It is progress, they promised to look at this enormous nationwide problem and they have.

“At the moment women are still not routinely getting important information before giving birth – this should be given proactively to everybody and that will be a big win.

“The prime minister though needs to be tougher on the baby formula companies.

“Their marketing claims, their unjustified pricing – it’s stacked against families who just need to feed their babies safely.”

The UK government stopped short of accepting all of the recommendations made by the CMA.

More radical ideas such as a price cap on baby formula are not being considered.

Charities have also told Sky News the situations some families find themselves in have not eased.

Founder of the Hartlepool Baby Bank, Emilie De Bruijn, told Sky News the demand they see from desperate families is “constant and unmanageable”.

She said: “Parents are really feeling the pinch right now, and demands on baby banks are rising and it can feel quite relentless.

“We are pleased to see the extension of the National Breastfeeding Helpline alongside measures such as allowing parents to use points and vouchers.

“It is important that parents are supported to feed their children in whatever way they want and we hope that steps will continue to be taken to reduce the cost of formula and increase understanding that all brands are nutritionally the same.”

Continue Reading

Trending