Investment banks Morgan Stanley and Goldman Sachs teamed up with Canary Wharf's biggest shareholder yesterday in a possible €1.5 billion bid for the owner of Britain's tallest building.
Canary Wharf, which has turned derelict docklands in the east of London into a new financial district, has been at the centre of takeover speculation since it announced in June it had received several approaches.
Morgan Stanley and Goldman Sachs previously seen as opponents in a bid battle, issued a statement yesterday confirming a weekend report that they would work together on a possible offer.
Their property funds are teaming up with New York-based private investor Simon Glick, who owns 14.5 per cent of Canary Wharf stock. Sources familiar with the approach have said the offer is likely to be pitched at up to £1.6 billion.
With Morgan Stanley, Goldman and Glick getting together, the spotlight will now shift to Paul Reichmann, Canary Wharf's founder and chairman and Canadian conglomerate Brascan Corp , which has built up a near 10 per cent stake.
Reichmann holds a 7.7 percent stake in Canary Wharf and has said he might consider making a bid for the company.
Canary Wharf has suffered along with many other commercial property companies as the global economic slowdown has hit many of its occupants in the banking sector. But it owns real estate that rivals covet.
Its tenants include banking heavyweights Citigroup, HSBC and Morgan Stanley.
