Brascan to sell Canary buildings to reduce debt

Brascan plans to sell buildings in Canary Wharf to pay back debt if it is successful in its £1.6bn bid for Canary Wharf Group plc, according to documents published yesterday, the Financial Times reported citing the offer documents Brascan posted to Canary Wharf shareholders.

The move flies in the face of previous indications from the Canadian property group´s backers, the paper said. Paul Reichmann, founder and former executive chairman of Canary Wharf, earlier this year backed Brascan´s 275 pence a share offer over rival Morgan Stanley because the US group´s plans included selling buildings.

Brascan and Morgan Stanley have battled for control of Canary Wharf for eight months. Brascan, which owns 9.2 pct of Canary, is being backed by Reichmann, who owns 8.9 pct and Franklin Mutual, which owns 6.8 pct.

Source: Freeman News

Related News