Canary Wharf owner Songbird says £2.6bn offer undervalues its business

Songbird Estates has said a takeover offer by the Qatar Investment Authority and Brookfield Property Partners does not reflect the full value of the Canary Wharf financial district owner.

The offer of 350 pence a share in cash values Songbird at about £2.6 billion. The bid was described as a final cash offer that cannot be raised.

The price “does not reflect the full value of the company, its unique position and future growth potential”, Songbird said in a statement. Songbird values its adjusted net asset value at 381 pence a share, it said.

The company’s board plans to write to shareholders with a detailed view of the offer.

Qatar and Brookfield would probably need to bid at or above 400 pence a share to secure a deal, according to Hemant Kotak, an analyst at Green Street Advisors.

– Bloomberg