Takeover doubts knock Canary
CANARY WHARF risks having a further £200m wiped from its market value as fears grow that a much talked-about takeover for the Docklands developer will fail to materialise.
Some £90m was knocked off the value of its shares today, leaving the company worth £1.37bn, as reports intensified that revised, lower bids may be rejected by Canary Wharf's independent directors next week.
Pressure intensified from the market for a formal statement about the progress of nearly five months of takeover talks, which have not resulted in a formal offer, as the shares plunged as much as 23p, or 9.2%, to 227p before recovering to 235 1/4p.
Deutsche Bank analyst Jeremy Anagnos said: 'The price could go much lower if no bids come through.' He did not rule out the shares falling to 200p. That would value the company founded by Canadian chairman and major shareholder Paul Reichmann at £1.17bn.
A Canary Wharf spokeswoman declined to comment on offer deadlines. Suitors include a consortium led by Morgan Stanley and Goldman Sachs' property funds, Canadian developer Brascan, a 9% shareholder.
Reichmann has also declared an interest in making an offer.
