With Manchester United (NYSE: MANU) now up for a potential sale, the number of parties interested in acquiring the football club is growing by the day.
YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY.
On Thursday, a report from British tabloid The Daily Star said that none other than tech giant Apple (NASDAQ: AAPL) is interested in buying the club for around $7 billion. The reports state that bosses of Apple have expressed an interest in discussing a potential deal with CEO Tim Cook looking to explore the opportunity.
They went as far as to state Apple will line up talks with the banks appointed to oversee the sale, including The Raine Group, and the company’s plans could include building a new state-of-the-art stadium.
However, in a quick dismissal of the rumour, Apple-focused website MacRumors said the reports are wide of the mark. Citing a source with direct knowledge of the situation, the publication stated the talk of Apple’s interest in the footballing giant was false, and they are not currently planning to purchase the Premier League club, dashing Manchester United fans’ hopes that the company with a more than two-trillion dollar market cap, could take charge.
Elsewhere on Thursday, it was also reported that the owner of Inditex, Amancio Ortega, has emerged as a potential suitor of Manchester United. Ortega, whose company owns fashion brands such as Zara, Bershka, and Massimo Dutti is one of the richest people in the world.
He is said to have informed Manchester United executives of his interest.
News that Manchester United’s owners are exploring a potential sale for the club resulted in its share price rising significantly. It gained 14.6% on Tuesday and a further 25% on Wednesday. Premarket Friday, the stock is up more than 9%.
Following the initial reports, Jefferies analyst Randal Konik told investors in a note that he expects “a competitive process” and believes the club’s fundamentals and “significant global reach” merit a premium to recent comparable transactions. Konik, who has a Buy rating and $17 price target on Manchester United shares, noted that Premier League rival Chelsea sold for $3.1 billion plus $2.2 billion committed to investments, adding that Manchester United yields more revenue and EBITDA and has more fans and followers.