Takeover News & Bid Information
Last Saturday, 19 May 2007, Thakin Shinawatra's lawyer Noppadon Pattama said "What I can say now is we have tendered a bid for the team. We had to be silent because we had to follow the stock regulations as we are trying to buy a listed company" he added "The deal is not formally or legally concluded yet". Pattama also gave quotes to other Far East media saying "Thaksin has officially submitted his bid to buy the football club. There is no any official conclusion yet at this moment, but everything is proceeding well, by the end of this month, everything will be clear."
A matter of hours after Pattama's comments, the English media reported that Manchester City officials had confirmed that they remained in talks with several parties with reference to a potential takeover bid and suggested that City were unaware of a formal bid being made.
Two days later, on 21 May 2007, Noppadon Pattama confirmed that a formal bid had not been made but did say "The formal bid will be made in the next few days and we hope to get a decision by the end of the month". As of today, 24 May 2007, there have been no announcements by the Plus Markets (stock exchange) that a formal bid has been made for Manchester City Plc. Perhaps we can take what Noppadon Pattama says with a pinch of salt?
Since Noppadon Pattama's claims to the media, Wolverhampton Wanderers have been taken over by multi-millionaire Steve Morgan and reclusive billionaire Mike Ashley has acquired 41.6% of Newcastle United, launching a bid in the process.
The takeover bid for Newcastle United serves as a reminder to us all that if or when a formal bid is made for Manchester City Plc certain amounts of shares are required to achieve various milestones, for example:-
1) If an investor acquires 30% or more of a company then they must make a formal bid for the rest of the shares at the price they paid for them
2) If an investor acquires 50.1% then they will effectively have control of the company
3) If an investor acquires 75% they will be able to de-list the company from whichever stock exchange it is registered on
4) If an investor acquires 90% they will be able to forcibly acquire the remaining shares, thereby gain full ownership of the company
There is something else to consider and that is for the majority of companies when you acquire 75% of the shares you will not require the approval of shareholders to undertake transactions. In practice that would mean that, like the Glazers' takeover of the Club down the road, when 75% of the shares are owned debt could be transferred to the company. Also, with 75% of the shares owned changes could be made to the memorandum and articles of association.
Going back to Newcastle United, it is clear that Mike Ashley's bid has taken Freddy Shepherd by surprise. Freddy Shepherd owns 29.8% so without acquiring these shares Mike Ashley will not get to the 75% milestone. It will be interesting to see how the takeover bid for Newcastle United pans out.
posted by Manchester City Supporters' Trust @ 7:39 pm
19 comments
"YOUR CITY. YOUR TRUST."
19 Comments:
We all know that
I didn't! Thanks for the information and as for the anonymous fella, well you did say it served as a reminder!
Yes - too many authoratitive statements. No wonder the club are keeping quiet. Doesn't help us though - half a team, no manager, players leaving because they're in the same situation as us.
Have I spent my season ticket money on a turkey that's doomed to go down?
We don't have to like it.....
Thanks for the information. I cannot believe how quite the club have been on the matter of a takeover. The longer it goes on the more frustrating we all become. I am fed up with the way current board have not kept us informed. We need more information.
I wish everyone would stop panicing. The law is very tight on what you can and can't say during a takeover bid for a company! Whilst you are all shouting and moaning, John Wardle and Co. are negoiating the best deal for City! They love City, I think it disgusting how some so called City fans are treating them!
thanks for that last comment Mr Wardle!
Can anybody explain to me why all the other clubs that are being taken over haven't been slapped all over the news and have just got on with it? Why is it we have to make a song and dance about everything, be so bloody secretive and, as is usually the case, leave ourselves open to being the laughing stock of English football? I'm sick of it, just give us an answer and stop pussy footing around!!!
I would hardly say it's plastered all over the news. Internet sites and local news yes. Exactly the same as in Newcastle. Check out the comments on talk of the toon forum about their takeover. Exactly the same as us.
Thanks for the information
Dave.
while all this takeover business has been going on it has upset everyone concerned with the club to such an extent that joining portsmouth deems to be a possitive career move please sort the situation quickly before anymore insanity sets in
Shinawatra has an unwelcome political high profile in Thailand on the back of the speculation generated in buying the " Cult" Premier League Club.
His assets there cannot be released without goverment approval which does not seem certain in the existing political climate.
He may well be coppering up from a stash hidden abroad but my gut feeling is that the unpaid publicity for this deposed PM at home is well worth the cost of a couple of accountants undertaking due diligence.
His UK profile is non existant, why no assurance to us to respect the traditions and values of our football club?
No anything !
Why the silence from the board ?
Not even well intentioned leaks.
The guy seems a shyster making merry on the back of our name for poltical manouvering at home.
Dont hold your breath there are no legs in this story, it will fizzle out.
The Manchester United Evening No News has lived up to its repuation on reporting the whole affair to date.
Sinatra and his spokesman Mr Pappodom have a profile lower than Lord Lucan.
Mackintosh must be delighted in dealing with two cardboard cut outs and no money !
Better than the ongoing mysterious american consortium headed by Phil Silver ?
You've got a link to newsnow on you site, and you're just re-hashing stoties on there.
Well done. Go and get a job at the MEN
Who is Phil Silver? Tell us more..!
Put up or shut up Poppy baby.
B Pye
Gaining 50.1% of the issued share capital (point (2) in the piece) does not give control of the company, only control of the board i.e. the power to hire and fire directors. In fact 50.01% would do.
ollie you mention the 4 various milestones that must be achieved after a formal bid..is received... between the 30% and the 90% milestone.. ...have you any advice for the share holders, when would be the best time to sell their shares or should they keep hold..until forced....and would this take over ruin the chance of getting a fan on the board.????
I cannot believe the apathy that has set in amongst City fans. Traditionally, we have backed the club through everything and made our feelings known along the way.
Yet in the face of a takeover with so many unanswered questions, so many unsubstantiated "facts", so little reassurance or communication from the club, so little prospect of someone like Frank Sinatra actually living up to the hype, so little prospect of this takeover actually happening due to the political machinations and wranglings, let alone the financial mess, in a country that's 20,000 miles away, I am GOBSMACKED all of you are happy to let it ride and see what happens.
I am hugely disappointed in our so called fans' willingness to allow this board to plunge us into a situation that on the face of it could lead us to a scenario worse than Leeds' current plight.
We desperately need investment into this club - afterall, we've lost our manager, our back room staff (as poor as they all were), players criticising and leaving the club - but never mind, we've got a takeover on the go that is based in nothing but quotes from the relevant parties PR machines.
You couldn't make it up, honestly. When are you going to wake up and smell the coffee people?
To you guys running the Trust, for god sake, get yourselves the shares you need as quickly as possible, get your director appointed to the board and bring these halfwits ruining my club to account. They are running amok with my club and are accountable to no one. But it's all ok isn't it fellow blues, cos we're getting taken over.
Wake me up when it's over.
eddie of longsight is spot on with his post...should we let this take over happen...is it good for the club....should we just be lookin for someone to invest or be looking for someone to buy the club out right...ect..ect...ect so many unanswered questions...as my post previous to eddies..nows the time for the trust to act and advise its present and future members ...what should we be doing???
Dont Panic, Dont Panic !
There are currants washing round our football club too strong to control.
The trust are not yet strong enough to influence the tide of history.
We have to stand firm and hold the faith.
Cometh the hour, cometh the man
Bernstien revitalised us in the deepest hour of darkness who knows how this senario will unfold or bring forward ?
The media speculation is at a frenzy bewildering everyone including themselves.
Phil Silver is Sargent Bilko,well loved US Airforce comedy wheeler dealer, before your time guy's !
If you want to see a comedy act look outside Manchester to the franchaise,the US based over leveraged owners want out, now that will be funny, hawking that over hyped charade on a wheelbarrow.
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