Manchester United (NYSE:MANU) is trending today and there’s unusually heavy trading volume in MANU stock. However, investors might want to be cautious. Apparently, the excitement surrounding Manchester United this morning concerns buyout talk that’s not currently confirmed.
Manchester United is a famous football team/club in the U.K. By “football,” I mean soccer. In the U.K., just like in the U.S., popular sports teams are quite lucrative and serious takeover bids are major news items.
According to a report from the Daily Mail (via Bloomberg), investors in Qatar plan to make a bid for Manchester United “in the coming days.” However, Bloomberg describes this as “growing M&A speculation.”
In other words, it isn’t confirmed that a buyout of Manchester United is actually going to happen soon. Still, the report asserts a potential bid “would come from separate, individual Qatari investors who want a full takeover” of the English Premier League club.
What’s Happening with MANU Stock?
Sometimes, speculation is enough to get the investing community in a buying mood. This seems to be the case today, as financial traders pushed MANU stock up 13% soon after the market opened.
However, the buyers might want to be careful; as of this writing, a finalized buyout of Manchester United hasn’t been confirmed. Hence, this might turn out to be a case of “buy the rumor, sell the news.”
Currently, the Glazer family, who are based in Florida, own Manchester United. There’s been chatter since last year that the Glazer family has been “mulling a potential sale of the team.”
It’s also worth noting MANU stock has rallied approximately 75% over the past 12 months. Clearly, today’s speculation is adding to the buyers’ fervor.
But again, all of this is still in the rumor phase. Plus, the “individual Qatari investors” weren’t identified in the Bloomberg report. It will certainly be interesting to find out how this unfolds and whether the rally in Manchester United’s shares will continue over the coming days.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.