Canary Wharf rejects Morgan Stanley offer as Reichmann steps down

Canary Wharf has rejected Morgan Stanley’s £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 “unable to recommend to shareholders acceptance of either of the indicative offers”.

Morgan Stanley had offered 255p per share for Canary Wharf, in cash and stocks. Brascan’s offer was 3p lower, but was an all-cash deal.

Reichmann announced his resignation in a statement to the Stock Exchange. “I 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 far”, he said.

Canary Wharf Non-executive Director, Martin Jacomb, has been appointed Acting Chairman.

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