Canary Wharf has rejected Morgan StanleyÃ¢â¬â¢s ÃÂ£1.5bn offer for the company, coinciding with the announcement that Paul Reichmann will step down as Chairman to launch his own bid.
The news comes a day after the Docklands developer rejected an offer from the Brascan Corporation, which currently owns a 9% stake. Canary Wharf said today that it was Ã¢â¬Åunable to recommend to shareholders acceptance of either of the indicative offersÃ¢â¬Â.
Morgan Stanley had offered 255p per share for Canary Wharf, in cash and stocks. BrascanÃ¢â¬â¢s offer was 3p lower, but was an all-cash deal.
Reichmann announced his resignation in a statement to the Stock Exchange. Ã¢â¬ÅI am proposing to continue with the endeavours, which I have recently begun, to form a consortium with a view to making an offer to the shareholders of the company at a level in excess of that reflected in the offers received so farÃ¢â¬Â, he said.
Canary Wharf Non-executive Director, Martin Jacomb, has been appointed Acting Chairman.