Severn Trent incurred GBP19 million in costs over Canadian-led takeover approach
Today, the UK water company, Severn Trent Plc, stated that it incurred GBP19 million in expenditures over a buyout approach. Severn Trent rejected a GBP5.3 billion or US$8 billion bid from Canadian-headed infrastructure alliance.
LongRiver Partners withdrew its offer last month for Severn Trent. Its attempted takeover that started on May 14 failed twice. Severn Trent wanted LongRiver Partners to sweeten its bid because it was too low for the company. Long River Partners was comprised of Borealis Infrastructure Management Inc., Britain's Universities Superannuation Scheme and a Kuwaiti sovereign wealth fund.
Severn Trent was Britain's second-largest water company by market value. It was based at Coventry. It supplied drinking water to 7.7 million people and 8.7 million sewer services in the Midlands and Wales. Severn Trent stated in a trading update that counselling, legal and related costs "addressing this approach" amounted to GBP19 million.
From the end of trading on May 13 before the buyout approach to this day, Severn Trent stocks fell 4.2% to 1,749 pence. This was contrasted with a 1.5% decrease by the FTSE100 Index.