Reichmann keeps Canary door open

By JONATHAN PRYNN FOR MAILONLINE
Updated:

 

CANARY Wharf today confirmed that its executive chairman Paul Reichmann is considering putting together a bid consortium for the property company he floated on the stock market in 1998.

Although it strongly denied that the Docklands group had received 'any proposal' from Reichmann 'or any consortium formed by him', the company also made it clear that an offer could not be ruled out.

The statement from the company followed strong weekend reports that the veteran Canadian businessman has already informed the board about plans to launch a £1.8bn bid.

The company has put itself up for auction and set a deadline of Thursday for offers. It was reported that Reichmann would unleash his offer if bids came in below a certain level, thought to be around 310p a share.

In its carefully worded statement, Canary said: 'Mr Reichmann has confirmed to the board that he has not yet formed any definitive intention to form a consortium to make an offer for the company, although he continues to review his options.'

Reichmann is believed to consider Canary shares undervalued at the 253p they closed at on Friday and to fear a predator could pick up the group cheaply. He has already led one buyback of Canary Wharf, taking it off the hands of the banks for £800m after it collapsed into receivership in the early 1990s. His family still holds just under 8% of the shares.

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