Sheikh Jassim is the clear favorite over Sir Jim Ratcliffe as a result of the Glazer family apparently doing a U-turn and no longer wanting to have a part in Manchester United.
The Glazer brothers reportedly wanted to work for United in some capacity during the entire process.
Because of this, Ratcliffe‘s offer, which would have allowed the Glazers to keep their club shares before subsequently selling them, was first seen to be the best one.
However, the Financial Times reports that they are now prepared to give up all of their club ownership, which means they are leaning toward Sheikh Jassim.
The American owners are now probably favoring the Qataris’ debt-free bid for the entire club, which is estimated to be worth roughly £5.5 billion.
According to the French publication Nice-Matin, Ratcliffe has learned of their desire and is ‘losing faith’ in his ability to close the deal.
However, as Ben Jacobs says, there is presently “no real need to” place any possible investor in a “period of exclusivity.” People have grown fixated on which of the two would be designated the “preferred bidder.”
According to Jacobs, “those overseeing the process are working around the clock with both groups right now to try and get both offers in shape, which is highly unusual.”
This is another reason why focusing on a preferred bidder is largely ineffective. If the process had started earlier, you would have a preferred bidder who would then enter into an exclusivity period, conduct due diligence, and engage in any potential final negotiations. This would be significant because the Glazers would have shown their cards.
In many respects, there is less need to name someone the favored bidder as the process has progressed. The Glazers and the Raine Group may just choose a winner instead. Since every offer on the table is executional, there is really no need to put either of the parties or any minority investor in an exclusivity period until they choose a winner.
The Glazers may certainly have the highest level of competitive tension if they don’t grant a time of exclusivity up until they choose a winner.
“If or when a winner is named, we then wait to see if there is a brief window of exclusivity to actually complete the acquisition process, but that would still differ from a preferred bidder in a window of exclusivity,” the author continues.
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