X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LONDON-Canary Wharf chairman Paul Reichmann has announced his intention to form a consortium of investors to bid for the company he founded.

A stock exchange statement from his IPC Advisors vehicle said it was “committed to maintaining the integrity of the Canary Wharf estate and seeing the Canary Wharf vision through to completion by carrying out its future development plans.”

The consortium intends to work with Canary Wharf’s existing management if a bid succeeded.The statement added that at this stage there is no certainty that a consortium could be formed or a bid announced.

A Reichman-led bid would effectively create a three-way bidding war for the UK’s largest quoted property company. A consortium of US investment banks Morgan Stanley and Goldman Sachs and Canadian conglomerate Brascan are the only other bidders to emerge so far.

Today’s statement is seen by analysts as a way of scotching speculation that Riechmann would throw his 7.7% stake behind the Morgan Stanley/Goldman Sachs bid.

Sources close to Reichmann previously indicated that he would consider bidding if other bids came in below 310p per share, which would value Canary Wharf at £1.8 billion ($2.9 billion). But indicative offers from the other two bidders were only in the 260-280p region and City sources mooted a bid of around 275p would be most likely, valuing Canary Wharf at £1.6 billion ($2.6 billion).

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.