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| Version 1 | Version 2 |
|---|---|
| Canary Wharf owners reject Qatar bid | Canary Wharf owners reject Qatar bid |
| (about 4 hours 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. | 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 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. | "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 is not surprised that the offer was rejected, describing it as far too low. | |
| "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. | "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. | 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. |
| In the UK, Qatar also owns Harrods, Chelsea Barracks, HSBC's headquarters and the Shard, Europe's tallest skyscraper. | |
| QIA was founded in 2005 by the state of Qatar to help its economy by investing in a diverse array of businesses, outside of the country's huge oil and gas resources. |