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Canary Wharf owners reject Qatar bid | Canary Wharf owners reject Qatar bid |
(35 minutes later) | |
The owners of Canary Wharf, Songbird Estates, have rejected a joint takeover bid from the Qatar Investment Authority (QIA) and a US investor, Brookfield Property Partners. | The owners of Canary Wharf, Songbird Estates, have rejected a joint takeover bid from the Qatar Investment Authority (QIA) and a US investor, Brookfield Property Partners. |
Songbird's chairman, David Pritchard, said the offer of 295p a share "significantly undervalues" the firm. | Songbird's chairman, David Pritchard, said the offer of 295p a share "significantly undervalues" the firm. |
QIA already owns 28.6% of Songbird, while Brookfield has a 22% stake in Canary Wharf Group. | QIA already owns 28.6% of Songbird, while Brookfield has a 22% stake in Canary Wharf Group. |
Songbird shares rose to a six-year high on Thursday on news of the offer. | Songbird shares rose to a six-year high on Thursday on news of the offer. |
They closed up 22% at 320p a share. | |
"The proposal significantly undervalues Songbird and does not reflect the inherent value of the business and its underlying assets," said Mr Pritchard. | |
"The group has an exceptional management team with a clear vision to deliver additional shareholder value, including from our 11-million-sq-ft development pipeline, the largest in London," he continued. | |
James Carswell, real estate analyst at Peel Hunt, says he's not surprised that the offer was rejected. | |
"There's a real possibility that QIA and Brookfield could come back with another offer. In our view, it needs to be in the region of 350p a share to be accepted," he said. | |
Canary Wharf, which is 69% owned by Songbird, was established 25 years ago as the new financial district in London, and is home to some of the world's biggest banks. | |
Qatar also owns Harrods and the Shard, Europe's tallest skyscraper. | Qatar also owns Harrods and the Shard, Europe's tallest skyscraper. |