The founder of British property group Canary Wharf has failed to raise enough money to topple an agreed $2.86 billion bid for the company he helped create.
It is now up to founder Mr Paul Reichmann's ally, Canadian conglomerate Brascan, to make the next move in the battle for Canary Wharf, the company which has turned derelict Thames docklands into a second London financial district.
Mr Brascan joined with Mr Reichman to counter to counter a bid led by US investment bank Morgan Stanley, arguing that it undervalues the firm.
Under the terms of the Reichmann/Brascan deal, struck in December, they agreed that if Mr Reichmann failed to come up with an offer, Brascan would attempt to make its own 267 pence per share takeover.
Today's statement by Mr Reichmann, who owns 8.9 per cent of Canary Wharf, triggered an agreed 10 working-day countdown, during which Brascan can try to come up with its own bid.
Brascan's deadline is February 11th. The Canadian firm, one of Manhattan's biggest landlords, owns 9 per cent of Canary Wharf.
But the Morgan Stanley-led consortium still faces the hurdle of getting 75 per cent of investors to support its recommended 265 pence per share offer for the firm, named after a dockyard that once handled bananas imported from the Canary Islands.
The consortium is trying to take over Canary Wharf through a scheme of arrangement, a fast-track strategy that requires a higher level of shareholder approval than a regular takeover. Known opponents of the Morgan-led bid hold 24.7 per cent of the vote.