[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Friday, 21 May, 2004, 18:15 GMT 19:15 UK
Songbird swoops on Canary Wharf
Canary Wharf tower
The skies settle after a long and bitter takeover struggle
The battle for Canary Wharf has been won by a consortium led by investment bank Morgan Stanley, concluding an 11-month bidding war.

Over 60% of shareholders backed the 1.7bn offer at 295 pence a share from Morgan Stanley's bid vehicle Songbird.

Bidding rival Brascan lost out despite securing the backing of former Canary Wharf chairman Paul Reichmann.

The company had recommended Songbird's bid because the cash element was higher than Brascan's 275 pence offering.

The two suitors had been wrestling for control of Canary Wharf since last June.

Shareholders split

The company became a takeover target when its share price took a hit after key financial services clients pulled out of Canary Wharf.

The ensuing bid war spilt Canary Wharf's biggest shareholders.

Songbird benefited from the backing of New York diamond magnate Simon Glick, while Brascan had the support of Paul Reichmann, who already knew the company inside out.

Mr Reichmann was part of a consortium that rescued the property developer in 1995 after a slump in the global property market pushed the firm into administration.

Canary Wharf turned derelict east London dockyards into London's second financial centre.

Its cluster of high rise towers are home to financial heavyweights such as Citigroup and Lehman Brothers.

Canary Wharf shares closed up 3.75 pence at 293 pence.


SEE ALSO:
Songbird ups Canary Wharf offer
16 Apr 04  |  Business
Canary Wharf bid deadline looms
07 Apr 04  |  Business
Canary Wharf gets new Brascan bid
12 Feb 04  |  Business
Brascan reopens Canary bid battle
05 Feb 04  |  Business
New offer plan for Canary Wharf
17 Dec 03  |  Business
Canary shares soar on bid hopes
05 Dec 03  |  Business
Bid battle looms for Canary Wharf
07 Nov 03  |  Business
Canary Wharf considers 1.5bn offer
03 Nov 03  |  Business


RELATED INTERNET LINKS:
The BBC is not responsible for the content of external internet sites


PRODUCTS AND SERVICES

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East | South Asia
UK | Business | Entertainment | Science/Nature | Technology | Health
Have Your Say | In Pictures | Week at a Glance | Country Profiles | In Depth | Programmes
Americas Africa Europe Middle East South Asia Asia Pacific