Canadian fund manager Brookfield Asset Management has raised concerns about the health of Multiplex’s UK business following its A$7.3bn offer for the Australian developer.
A spokesman for Brookfield said that Multiplex’s Australian and Dubai operations raised no doubts at all because they were successful and making profits.
However, the company’s UK business is still tainted by the troubled Wembley Stadium development that over-ran by a year.
“We are not yet at the stage to evaluate what is the true potential of the UK,” said the spokesman.
“We do not have a negative view of the UK business, but we do need to understand what measures the management has put in place to avoid another Wembley.
“The questions are, ‘How will it be done? Who will manage it? What will be the business plan?’ All those questions remain.”
Last September, Multiplex disbanded its construction arm, which now acts solely for the group’s development business and does not tender for third-party work.
Brookfield, which failed in a hostile takeover of the Canary Wharf Group three years ago, is also believed to be bidding for the Bank of America headquarters in Canary Wharf.
Brookfield’s A$7.3bn (£3.1bn) offer for Multiplex last Tuesday reflects a price of A$5.05 a share.
However, there is speculation that a counter-bid for Multiplex is on the cards from Australian developer Mirvac, which declined to comment on claims that it is preparing a possible bid at A$5.20 per share.
The offer for the rest of Multiplex is subject to Brookfield obtaining a relevant interest in 50.1% of Multiplex.
Multiplex recommended the offer to its shareholders.
It has been a target for private equity following a softening of its share price because of its troubled Wembley Stadium project.
