Investment banks Morgan Stanley and Goldman Sachs teamed up with Canary Wharf's biggest shareholder today in a possible £1.5 billion sterling bid for Britain's tallest building.
Canary Wharf, which has turned derelict docklands in the east of London into a 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 today confirming a weekend media report they would work together on a possible offer.
Their property funds are teaming up with New York-based private investor Mr 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 in cash.
Canadian conglomerate Brascan Corp, one of Manhattan's largest landlords, and Mr Paul Reichmann, Canary Wharf's founder and chairman, could also participate in any auction. Brascan has built up a near 10 per cent stake in Canary Wharf.
Shares in the firm, named after a dockyard that once handled bananas imported from the Canary Islands, were up 1.6 per cent at 259-1/2 pence, valuing it at around £1.52 billion. The firm has net debt of £3.4 billion.