Canary Wharf’s advisers and non-executive directors have attracted criticism from analysts and shareholders about how the sales process has been handled.
Citigroup Smith Barney real estate director Mike Prew said: “The lack of a recommended bid on the table is the result of a failed sales process. The auction process has attracted few bidders, which has meant that the whole process has been futile.”
Another analyst was even more scathing. “The whole process has been a fiasco. Canary’s advisers Lazard and Cazenove must be feeling distinctly embarrassed. This has dragged on for months.
“Six months ago there might have been value in MSREF’s or Brascan’s bids. But not now. If shareholders see an upside and want equity, why sell at all?”
Paul Reichmann has also come in for criticism for not stepping down from his executive position earlier.
A source close to a leading shareholder said: “Reichmann has been making noises about bidding and has been attempting to raise funds for months.
“It is deeply conflicting for an executive chairman to also be a principal in the bidding process.”
Acting chairman Sir Martin Jacomb admitted that the process had been “immensely time-consuming, and incidentally, expensive”.
Some analysts have linked this comment to rumours that the Morgan Stanley and Simon Glick consortium would seek £2m for its rejected takeover proposal, because it struck a “pre-announcement break fee” agreement.
References: EGi News 14/11/03
