Canary Wharf´s Reichmann faces resignation threat

Paul Reichmann could be forced to resign as executive chairman of Canary Wharf PLC if no bids for the Docklands property company emerge, The Sunday Telegraph reported citing senior members of the board.

They are arguing privately that Reichmann´s position has become untenable at the group, which is at the centre of takeover speculation, the newspaper said.

A committee of independent directors, led by Sir Martin Jacomb, was set up in June to consider bids for Canary Wharf after the company admitted to receiving takeover approaches.

However, the committee has become increasingly frustrated by Reichmann´s tactic of threatening to launch a bid for the company if offers from rival bidders are too low, the article added.

'If no bids emerge, his position would be untenable. It is very difficult for him to be executive chairman and warrant holder and major shareholder and say that he wants to bid,' said one senior executive close to the company.

'Paul´s position has been a major point for the board, it is a very awkward situation. I wish he had decided to put a bid in five months ago and separated himself from the company, the executive is reported as saying.

Reichmann, who owns 7.7 pct of Canary Wharf, said in August that he was considering making a bid of his own, but only if outside offers were below 310 pence a share.

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