Songbird Estates, the majority owner of London's Canary Wharf, has rejected a £2.2 billion takeover proposal from Qatar Investment Authority and Brookfield Property Partners, saying it "materially undervalued" the group.
"This proposal significantly undervalues Songbird and does not reflect the inherent value of the business and its underlying assets," Chairman David Pritchard said today.
The QIA already owns 28.6% of Songbird, which in turn owns 69% of Canary Wharf Group, the owner of the estate which rivals the City of London as a financial services centre.
US based Brookfield, which operates and invests in office and industrial property, has a 22% stake in Canary Wharf Group.
Songbird's shares had surged over 22% after the approach was made public yesterday.
Analysts said the bid was too low given the estate's potential. "With London office values and rents rising rapidly, the prospect of Crossrail, and Canary Wharf Group having made significant progress with its residential offer, we think the portfolio has significant upside potential," they said.
