Severn Trent declines takeover bid
The second largest water company listed in the London bourse, Severn Trent Plc has declined the takeover bid offered by the Kuwaiti sovereign wealth fund and Canadian infrastructure investor.
The proposal, according to the company's recent statement, 'completely fails to recognize the existing and potential value of Severn Trent.' The water utilitiies firm supplies water to nearly 7.7 million people and has a market value of GBP5 billion or US$7.6 billion.
The statement further said that the company was approached not just by the Kuwaiti Investment Office but also by the Borealis Infrastructure Management Inc and Universities Superannuation Scheme of Britain for takeover bids. The firm has advised the three bidders that they have until 5 pm of June 11 to formalize an offer, in accordance with takeover regulations of the United Kingdom.
The share values of Severn Trent increased to its highest level in nearly five years, rising 0.6% to 2090 pence per share in the London bourse. Overall, the firm has gained 33% this year alone.