Brascan Corporation, the Canadian investment group, said it is working towards making a new offer for Canary Wharf Group PLC, worth at least 267 pence per share in cash. Brascan, which has a 9 pct stake in Canary Wharf, had a 252 pence per share cash bid rejected earlier this year.
In addition, founder and former chairman Paul Reichmann has has committed his vehicle, IPC Advisors Corp, to vote against the 1.56 bln stg offer by 14 pct-shareholder Simon Glick with the backing of Morgan Stanley or any other offer made by that consortium.
The Morgan Stanley/Glick consortium values each Canary Wharf share at 265 pence per share.
In turn, Brascan would accept an offer by IPC for its share holding at a cash price of at least 280 pence per share if the proposed sale of 5 Canada Square and 25 Canada Square is not approved, or at least 275 pence per share if the disposal proposal is approved.
Brascan said it believes that, in light of today´s deal with Reichmann and Franklin Mutual Advisors LLC´s intention to also veto the Morgan Stanley offer the Morgan Stanley bid is doomed to failure.
Together Brascan, Reichmann and Franklin Mutual hold around 24.7 pct of Canary Wharf´s share capital.
At Canary Wharf´s EGM on Dec 22, Brascan has also committed to vote against the proposed sales of 5 Canada Square and 25 Canada Square.
Brascan´s offer would include a share alternative which would allow shareholders to receive, in lieu of 25 pence per share of cash, one share in a company to be listed on AIM to enable Canary Wharf shareholders to retain an ongoing interest in Canary Wharf.
'The arrangements between IPC Advisors and Brascan will permit IPC Advisors to continue its efforts to form a consortium to bid for the shares of the company and, through the support provided by Brascan´s irrevocable undertaking, I believe will enhance IPC Advisors´ prospects of forming the consortium and offering a higher price to all shareholders,' Reichmann said in a statement.