 Canary Wharf has had an turbulent past |
The tussle to take over Canary Wharf, owner of London's second financial district and tallest building, has taken another twist, with a concerted approach from two US investment banks and the firm's biggest shareholder. Morgan Stanley - which has already expressed interest in Canary Wharf - teamed up with Goldman Sachs and private investor Simon Glick in a possible �1.6bn ($2.5bn) takeover bid.
New York-based Mr Glick already owns 14.5% of Canary Wharf, which has been the subject of takeover speculation since June.
Separately, Canadian investors Paul Reichmann - who founded Canary Wharf in the 1980s - and Brascan Corp have said they are interested in a bid.
According to some reports, Mr Reichmann is already in talks with the two banks, with the aim of joining the consortium.
Ups and downs
Canary Wharf's shares closed up less than 3% on the news; shareholders are concerned that co-operation among bidders will lead to a relatively modest purchase price.
Brascan alone is believed unlikely to be able to finance a full bid, leaving a bank-led consortium the most probable purchaser.
Canary Wharf has debts of �3.4bn, built up during the long lean years during which it found tenants hard to secure.
The firm went bust in the recession of 1992, thanks to its reliance on vulnerable financial-sector clients, but has since enjoyed greater success as the Docklands district's amenities improved.
More recently, 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.
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