Qatar raises bid for Canary Wharf-owner Songbird to 2.6 bln stg

LONDON, Dec 4 (Reuters) - Qatar Investment Authority and Brookfield Property Partners have offered 2.6 billion pounds ($4.1 billion) for the majority owner of London's Canary Wharf, higher than an earlier approach but still short of Songbird's own expectations.

The partners said on Thursday they would offer 3.50 pounds in cash for each share in Songbird Estates, 55 pence a share more than their bid last month, which Songbird rejected, saying it "significantly undervalued" the owner of the business district in East London.

The QIA already owns 28.6 percent of Songbird, which in turn owns 69 percent of Canary Wharf Group, the owner of the estate which rivals the City of London (LSE: CIN.L - news) as a financial services centre.

Songbird has said an upturn in property values meant it was now worth 2.82 billion pounds.

QIA said it was seeking to simplify the ownership and governance structure of Songbird, and ultimately also Canary Wharf Group. "The Songbird Offer provides what we believe is a highly attractive opportunity for shareholders to exit an illiquid investment," it said. ($1 = 0.6373 pounds) (Reporting by Paul Sandle; editing by Kate Holton)