Why Manchester United Stock Is Surging Thursday

Manchester United Ltd MANU shares spiked higher Thursday morning following reports the company is negotiating granting exclusivity to Qatar's Sheikh Jassim in sale negotiations.

What Happened: Manchester United is reportedly negotiating exclusivity for Sheikh Jassim in sale negotiations regarding a $6 billion plus deal, per Reuters, citing people familiar with the matter.

One of the sources reportedly said members of the Glazer family would be cashing out their ownership stakes as part of the proposed deal and prefer the Qatari bid over a bid from British billionaire Jim Ratcliffe.

The news follows reports from earlier in the week from Al-Watan, a media organization owned by the father of Sheikh Jassim, that Qatari investors were successful in their bid to acquire the company.

Sheikh Jassim reportedly submitted a fifth and final takeover offer of more than $6 billion last week and said he would walk away from talks if a deal could not be reached within a week. 

In November, Manchester United's board commenced a process to explore strategic alternatives for the club designed to enhance future growth. 

"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," Avram Glazer and Joel Glazer, executive co-chairmen and directors of Manchester United, said at the time.

The Glazer family has been reviewing offers from potential buyers for the last seven months. Recent reports suggest that a deal may be on the horizon, although there has not yet been an official announcement.

MANU Price Action: Manchester United shares were halted in early trading Thursday. 

The stock was up 9.41% at $25.40 at the time of publication, according to Benzinga Pro.

Photo: nmoodley from Pixabay.