Morgan Stanley and Goldman Sachs have raised their joint takeover bid for Canary Wharf in an attempt to beat off competition from the Brascan Corporation, it was reported yesterday.
The investment banks, which are working with Canary WharfÃ¢â¬â¢s largest shareholder Simon Glick, are understood to have tabled a higher offer at the end of last week to coincide with a secret meeting of Canary WharfÃ¢â¬â¢s independent directors, who are handling the sale.
Although all bids for Canary Wharf have remained sealed, property experts believe the original offers submitted were between 250p and 280p per share. The revised offer is thought to be closer to 300p per share, the minimum analysts believe would be needed to secure a recommendation from the companyÃ¢â¬â¢s independent directors.
The news follows the disclosure that Brascan, which controls a 9% stake in Canary Wharf, will use its holding to block any rival bid that it believes undervalues the company.
Morgan Stanley and Goldman SachsÃ¢â¬â¢s increased offer is intended to win over Canary Wharf Chairman, Paul Reichmann, who holds a 7.75% stake in the company. Reichmann himself has indicated that he may also throw his hat into the ring if offers come in at below 300p per share.
Canary Wharf is expected to recommend an offer when it reports its results next week.