Canary Wharf Group owner Songbird Estates has told its shareholders to take no action in response to a Qatari-led takeover bid worth £2.6bn.
The firm said the offer of £3.50 per share by Qatar Investment Authority and US investor Brookfield Property Partners undervalued the company.
QIA and Brookfield formally published their final offer on Tuesday and Songbird said it would respond within the next 14 days.
Songbird independent chairman David Pritchard said the offer “does not reflect the full value of the company, its unique operating platform and future growth potential”.
He added: “Canary Wharf Group has put in place an unparalleled platform for continued long-term value creation at the unique Canary Wharf estate and elsewhere in London.
“With the commencement of four separate development projects delivering 22 buildings over the next five years, an overall development pipeline of more than 11m sq ft and a world-class management team, we believe that Songbird and Canary Wharf Group have an exciting future.”
QIA and Brookfield Property Partners said they already have commitments to the Songbird deal from three shareholders – Third Avenue Management, Madison International and EMS Capital – totalling around 32 per cent of the company’s free float.
But a deal would need the support of Songbird’s other major shareholders, which include Glick Entities (25.9 per cent), China Investment Core (15.8 per cent) and Morgan Stanley (8.5 per cent).
QIA already owns 28.6 per cent of Songbird and Brookfield Property Partners has a 22 per cent stake in the Canary Wharf Group.