After yesterday’s confirmation that it is the subject of a possible takeover bid, reports this morning state that Canary Wharf Group owner Songbird Estates has rejected the overtures.
In a statement released in response to media speculation, Songbird acknowledged the interest from Qatar Investment Authority (QIA) and Brookfield Property Partners, but advised shareholders to take no action as “there can be no certainty that an offer for the company will be made.”
The statement went on to say that, in accordance with takeover and merger rules, the Qataris and Brookfield must either confirm their offer or announce that they do not intend to make a bid by 4 December.
In the event of a firm bid, Songbird said that it would consider the offer and act in the best interests of shareholders and the company as a whole.
However, the FT today reports that Songbird has already rejected a preliminary takeover approach that values the company at just under £2.2 billion.
The newspaper quotes chairman David Pritchard as saying that the offer, which equates to 295p per share, “significantly undervalues Songbird and does not reflect the inherent value of the business and its underlying assets.”
The report goes on to say that the Songbird board was unanimous in its rejection of the takeover bid after discussing it with advisers.
“The group has an exceptional management team with a clear vision to deliver additional shareholder value, including from our 11 million sq ft development pipeline, the largest in London,” Pritchard added.
QIA already owns 28.6 per cent of Songbird, while Brookfield owns 22 per cent of Canary Wharf Group, which valued its property portfolio at £6.3 billion in September.
Previous Post
Urban Splash plans Office Space with an Industrial Feel
