MANCHESTER United yesterday ended takeover talks with US sports tycoon Malcolm Glazer after rejecting his business plan.

The club said an outline plan presented by Mr Glazer was not in its best interests because any offer would rely too heavily on borrowed money.

Its existing financial set-up gave it a distinct commercial advantage to exploit opportunities and invest in the team, United said in a statement.

But the Premiership club pledged to continue discussions with Mr Glazer and other shareholders about its long-term future.

United pledged earlier this month to scrutinise any offer to ensure that future operations of the club would not be put in jeopardy by a takeover.

Although the club said it had not received a definitive proposal from Mr Glazer, it had discussed the likely capital structure and business plan that would support a formal offer.

The club said: "The financial returns in any football club are very closely correlated with performance on the pitch.

"The board has decided to inform all shareholders that it would regard an offer which it believes to be overly leveraged as not being in the best interests of the company."

News of the breakdown of the talks between the club and Mr Glazer is likely to be welcomed by fans, many of whom protested outside Old Trafford ahead of the match with Arsenal on Sunday.

Supporters are thought to have been working on a plan with City broker Seymour Pierce to increase their shareholding and block Mr Glazer.

It emerged last week that Japanese bank Nomura was holding talks with Seymour Pierce about possible finance to assist in developing a strategy in the long-term interests of the club.

Mr Glazer, who owns the Tampa Bay Buccaneers NFL franchise, is United's second largest shareholder, with 28.11 per cent after increasing his stake earlier this month.

Discussions with Irish racing millionaires JP McManus and John Magnier, who hold 28.89 per cent through their Cubic Expression investment vehicle, had earlier broken down.