Canary Wharf founder may not bid for company

The founder of Canary Wharf says there is no certainty he will make a counter bid for the property company only days after voicing…

The founder of Canary Wharf says there is no certainty he will make a counter bid for the property company only days after voicing confidence he could win a long takeover battle.

Canary Wharf, the owner of Britain's tallest building, agreed on Friday to a £1.56 billion bid from a consortium led by US investment bank Morgan Stanley.

The vehicle controlled by Canary Wharf founder Paul Reichmann, IPC Advisors, said today it was "most encouraged" by the response of potential investors in its efforts to form a bid consortium.

But it added: "There can be no certainty that IPC Advisors will be successful in forming a consortium or in announcing an offer for Canary Wharf".

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Shares of Canary Wharf, which developed and runs London's second financial district on formerly derelict docks, were up 0.19 per cent at 270-1/2 pence in morning trade.

The Morgan Stanley-led consortium, Silvestor UK Properties, is backed by a major US shareholder in Canary Wharf, Simon Glick. Its bid values the group at £5.23 billion, including debt.

Reichmann, a former Canary Wharf chairman, said on Friday he expected to make the highest offer.

The battle for Canary Wharf began in March after a loss of confidence in management and a slump in the office property market sent its stock tumbling. It is now at the centre of a three-way tussle between the Morgan Stanley consortium, Canadian conglomerate Brascan, and Reichmann.

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