Reichmann steps down at Canary

PAUL REICHMANN dramatically stood aside as chairman of Canary Wharf today as he tries to assemble a £1.5bn takeover bid for the property empire he created.

But the latest twist in the Canary saga means that Reichmann will remain an executive director - simply handing the chairmanship temporarily to veteran investment banker Sir Martin Jacomb while he puts together a consortium.

He also told shareholders at today's annual meeting that the huge financial centre in Docklands will start to sell off individual properties in a bid to reduce the company's £5bn debt.

The independent directors of Canary have turned down one offer from a Morgan Stanley-led group and poured cold water on a 252p a share bid from Canadian 9% shareholder Brascan.

Reichmann, who owns 7.7% of the equity, said he was forming a consortium to bid 'at a level in excess of that reflected in the offers received so far'.

Brascan said today it will canvass Canary shareholders directly for their views on its offer in an attempt to sway the independent directors. Morgan Stanley's cash-and-shares offer is valued at 255p a share but some shareholders claim it is worth far less.

The shares rose 7 1/2p to 237 1/2p.