Goldman Sachs Whitehall property fund has pulled out of the consortium that is in exclusive negotiations to buy Canary Wharf for ÃÂ£1.5 billion ($2.5 billion).
The decision of one of the lead investors to withdraw from the bidding came as Canary Wharf´s independent board committee confirmed it had begun exclusive talks with the group which Morgan Stanley Real Estate Funds is leading. Shareholders are disappointed at the level of the bid. But the consortium is offering shareholders a stake in a new Aim-listed holding company for Canary Wharf as part of the deal.
Whitehall might still ultimately acquire some equity in the London Docklands development company´s takeover vehicle if the bid succeeds. But it is no longer willing to be a major funder of the deal to take one of Britain´s biggest quoted property companies private.