Canary Wharf owner Songbird has argued that a £2.6bn takeover bid does not recognise the company’s ‘full value’.
The Qatari sovereign wealth fund and Canadian investment firm Brookfield took a 350p per share final bid for Songbird Estates directly to shareholders on Thursday, raising the price on its previous 295p approach by 18.6%.
Songbird did not immediately reject the approach, keeping the door ajar, but said that it did not reflect the ‘full value of the company, its unique position and future growth potential’.
The revised offer is still substantially lower than Songbird’s boosted NAV of 381p per share, after Songbird last week raised its valuation by more than 30% to £2.82bn in line with other property companies’ improved performances.
Analysts have said that a 400p-a-share offer would ‘begin to adequately compensate investors’.
However, as the joint bidders have called their approach a ‘final offer’ it cannot be increased under Takeover Panel rules.
The consortium now has 28 days to produce its offer document and a further 60 days from ten to receive acceptances.
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