Reichmann bows out of Canary Wharf bidding

The battle for control of Canary Wharf took a new turn as Paul Reichmann, former chairman of the group and a 9% shareholder, said he was shelving his £1.6bn proposed bid for the Docklands office development and backing a rival offer.

The multi-millionaire was putting together a 275 pence a share all-cash deal for the east London property developer, 10 pence more than a third bidder, a consortium led by the US bank Morgan Stanley.

But Reichmann couldn´t finalise financing before the Jan 31 deadline and is giving his support to Brascan, a Canadian group, which is one of the biggest landlords in Manhattan.

Its bid values Canary Wharf stock at 267 pence in cash and Aim-listed Brascan shares.

'Both IPC and Mr Paul Reichmann believe that the successful implementation of an offer by Brascan represents the best available future for the Canary Wharf project,' Reichmann´s IPC Advisors Corp said in a stock exchange announcement.

Source: Freeman News

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