As tenants dry up, Canary Wharf is in need of rescue

The company, which owns most of London's second financial district, said it had enlisted financial advisers with the aim of assessing its options.

The news has given heart to Canary Wharf's shareholders, who had feared that the slowing economy might cause the firm to collapse.

Canary Wharf shares, which had been above �5 three years ago, have traded as low as one-fifth that level this year.

Ups and downs

Canary Wharf, one of the country's best-known property firms, has had a turbulent history.

Having been launched amid the stock market boom of the late 1980s, it went spectacularly bust in the recession of 1992.

Demand for office space in London, especially among the City financial clients it was seeking, was extremely weak during the first half of the 1990s.

But the late 1990s saw a remarkable resurgence in Canary Wharf's fortunes, mainly thanks to the rapid improvement in Docklands infrastructure, and the arrival of some high-profile new tenants - notably many former Fleet Street newspapers.

White knight?

More recently, however, the attack on the World Trade Center has made skyscrapers less popular; there is a sudden oversupply of cheap office space in London; and financial services companies are feeling the pinch once again.

Infrastructure has improved hugely in recent years

Canary Wharf's shares have fallen particularly sharply over the past six months, amid widespread market rumours that the firm was on the verge of insolvency.

The company has not divulged who its potential bidders are, but a number of rival property firms reportedly have designs on its portfolio, which can be acquired relatively cheaply at current market prices.

Two names mentioned by analysts were British property giant Land Securities and Brascan, a Canadian firm that is among the biggest landlords in Manhattan.

Brascan acquired a small stake in Canary Wharf earlier this year.