Canary Wharf deal jeopardised by price cut

LONDON (AFX) - Banks bidding for Canary Wharf, including Morgan Stanley and Goldman Sachs, are set to further cut the price they are prepared to pay for the docklands development complex, The Observer reported, citing sources at the investment banks.

The paper said a formal offer for Canary Wharf could be tabled within 10 days, but it is likely to be at less than 1.5 bln stg, or between 250-260 pence a share -- compared with estimates of 300 pence a share when news of the the bid first broke.

The paper also warned that the whole deal could collapse if they cannot settle on an offer within 14 days.

There was no one available at Canary Wharf Group PLC for comment.

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