Manchester United (MANU) is on the move.
On Friday, the stock spiked about 13% on volume of 34.9 million, as compared to daily average volume of about 1.4 million shares. All after the company said it was open to selling the club. It added that its Board of Directors already authorized the process to “explore strategic alternatives for the club.”
And, as noted by Investing.com: MANU will easily attract buyers, according to Jefferies. The analyst believes MANU is “a truly unique asset with significant global reach (>1B fans/followers) and plays in the strongest realm within the current media landscape — live sports.”
While there are rumors that Apple is planning to buy the club, that may not be the case. According to MacRumors.com, “A report earlier today from British tabloid The Daily Star claimed that Apple had expressed an interest in buying Manchester United for around $7 billion, but our source with direct knowledge of the situation said the report is false.”
According to The Telegraph, billionaire Sir Jim Ratcliffe will reportedly bid for the club.
As noted by TheFly.com: Ratcliffe, the owner of petrochemicals giant Ineos, is “wary about overpaying” as insiders suggest the Glazers are looking for a price in excess of GBP 5B, according to Morgan and Ducker. Ratcliffe previously contacted the Glazers in August but concluded at the time that a deal appeared unlikely, they add. Ineos has a rule when launching takeovers that it expects investments to pay off or increase significantly in value after three years, and sources close to Ratcliffe say he always puts business logic before passion.
While we wouldn’t rush to buy the stock after its gap higher, keep it on the radar.