Partner Article

Canary Wharf owner rejects Qatar takeover bid

Songbird Estates, the majority owner of London’s Canary Wharf, is expected reject a £2.6 billion takeover offer by Qatar’s sovereign wealth fund this week.

According to The Telegraph, Songbird’s board, which includes representatives from major shareholders Morgan Stanley and Simon Glick, are allegedly all in agreeance that that the takeover offer of 350p-a-share undervalues the company.

Qatar, in the form of the Qatar Investment Authority (QIA), and Canadian investment firm Brookfield, needs at least 50pc of shareholder support to enact a takeover.

While the QIA already owns a 28.6% stake, its takeover cannot proceed unless one of Songbird’s major shareholders steps up to support the multibillion pound bid.

David Pritchard, Songbird’s chairman, said: “The offer gives no value for Canary Wharf Group’s potential to earn development profits or for the growth potential of the existing estate and fails to take into account the value for its control of the estate….

“With the commencement of four separate development projects delivering 22 buildings over the next 5 years and an overall development pipeline of 11.5m sq ft, the board is confident that Songbird will continue to deliver value to its shareholders.”

This was posted in Bdaily's Members' News section by Ellen Forster .