Van de Arsenal Supporters Trust;
HEADLINE: Arsenal fans fear takeover as share price continues to rise
A COMPANY who invested in Manchester United and then sold their stake 
to Malcolm Glazer, opening the door for the American to finally take 
over the club, have in the last six months bought Arsenal shares 
raising fears among some shareholders, who are also fans, that the London
club could go the way of United.
It is believed that companies have been attracted to Arsenal 
because they believe they can make a substantial profit in 
anticipation of a takeover. Since September 2004 Arsenal shares on the 
OFEX market have risen dramatically from pounds 1,500 a share to pounds
4,600 now.
The Arsenal Supporters Trust, who speak for the small shareholders, 
alerted by the rise, have investigated and found that in the past six 
months several professional investment firms have been buying Arsenal 
shares, thereby pushing up the price.
In a letter to small shareholders, which has been seen by The Daily 
Telegraph, the trust say: "One of these shareholders was a significant 
shareholder in Manchester United prior to the bid by the Glazers. An 
analysis of this investor shows a track record for buying shares in 
companies that at a later date have received takeover approaches, at 
which point they make significant profits."
The letter does not say who these investors are but I can 
exclusively reveal that they are Lansdowne Partners Limited. In 
October 2003 they sold part of their stake in United to Glazer - the 
first purchase of United by the American business tycoon and his family.
Lansdowne are believed to have held on to their remaining stake and 
sold it when the Glazers completed their takeover, making a huge profit.
Lansdowne seem to have a nose for knowing which companies might be 
ripe for takeover. They specialise in investing in companies that 
might receive bids, pushing up the share price and giving the 
investors a nice profit. Managed by Stuart Roden and Peter Davies, two 
ex-fund managers from Mercury Fund Management, a well-known City firm, 
they have holdings in Marks and Spencer, who last year repelled a takeover
attempt by entrepreneur Philip Green.
For City institutions to own shares in Arsenal is rare. But this 
year the City has suddenly got interested.
Lansdowne bought their shares on April 29, paying pounds 4,000 a 
share and a total of pounds 6.7 million for their holding of 2.7 per 
cent. Their shares are registered in four different funds: Sterling 
Fund, Dollar Fund, Euro Fund and Limited partnership, the Arsenal register
does now show Lansdowne's name.
On Feb 19, another City institution, Morgan Stanley Securities Ltd 
and Morgan Stanley Co Inc, together bought 1,000 shares (1.6 per cent) 
at a price of pounds 3,950 a share and paying a total of pounds 4 million.
Both Lansdowne and Morgan bought the shares from the trustees of 
the Herbie Frogg Ltd Retirement and Death Benefit Scheme.
Unlike Manchester United, the Arsenal board exercise complete 
control and no takeover would be possible without their consent. When 
I spoke to Peter Hill-Wood, the Arsenal chairman, he said he had no 
fears of a takeover and the directors had no plans to sell. The 
directors, along with ITV, own 71 per cent of the club.
But ITV, who own 10 per cent, have made it clear that they consider 
their investment as "non-core", meaning when the right price comes 
along they will sell. At the moment they are sitting on a loss, having 
paid pounds 9,100 a share. They see Arsenal as undervalued.
Arsenal are valued at pounds 286 million. If you add their net debt 
of pounds 155 million, it gives a pounds 441 million enterprise value. The 
Glazers paid pounds 800 million for United, who were debt free.
All these investors, including ITV, know that when Arsenal move 
into their new stadium at Ashburton Grove they will earn more money 
(at present their football income is 50 per cent less than United's) 
and their share price will rise. The directors, who are getting old, 
might also be tempted to sell. At least one director has always wanted 
Arsenal to float on the stock market, allowing shares to be bought and
sold more easily.
The supporters' trust believe this makes the 15 per cent of the 
club owned by small shareholders crucial. Some 1,600 shareholders own 
10 or fewer shares and a further 170 shareholders own between 11 and 100
shares.
In their letter, the trust say: "We will never be in a position to 
prevent an individual gaining 51 per cent or 75 per cent control of 
Arsenal. What we as small shareholders can do is prevent any one 
person eventually controlling 95 per cent or more of the club as 
Glazer has been able to achieve at Manchester United.
"This 95 per cent ownership level is important because when this 
point is reached the shares can be de-listed, as has happened at 
Manchester United. The financial affairs of the club will no longer be 
in the public domain and the remaining shareholders are in a completely
subordinated position."
Lansdowne's Stuart Roden refused a request by the trust to meet 
them at the Arsenal annual general meeting.
											
			
						NAAR HET ANDERE FORUM!