The Qatar Investment Authority and the commercial property firm Brookfield are considering walking away from their attempted takeover of the Canary Wharf owner Songbird, after the developer estimated its value at £2.8bn.
This is 30% higher than the £2.18bn bid from QIA and Brookfield that Songbird rejected in early November.
Songbird said on Friday that it had held talks with the pair since then, but had not received a further proposal from them.
Pointing to booming property markets, Songbird said an independent valuation had estimated its net asset value at 381p a share, up 19% since the end of June. This compares with the tentative offer of 295p a share made by QIA and Brookfield.
QIA, the sovereign wealth fund of the energy-rich state, already owns nearly 29% of Songbird. The two bidders were widely expected to return with a higher offer, but are now thought to be considering pulling out.
Under takeover panel rules they have until 5pm next Thursday to put up a firm offer or walk away for six months.
Experts have suggested that Songbird is worth up to 400p a share. Analysts at Lazarus said: “An offer should start with a four and not a two.”
Songbird, the majority owner of Canary Wharf Group, is expanding its Docklands estate and also owns stakes in the “walkie talkie” skyscraper in the City and the Shell Centre on the South Bank, which it co-owns with another part of the Qatari investment empire.
QIA declined to comment. The fund’s UK assets include Harrods, the Shard, and stakes in Sainsbury’s, Barclays and Heathrow airport. Speaking earlier this year, QIA’s chief executive, Ahmad al-Sayed, indicated that Qatar is committed to London and the UK. “We are a global fund, a long-term investor – even if there is volatility it would only be temporary.”
