UPDATE: Unless Severn Trent Engages in Discussion, Bid Consortium Will Walk Away
According to a source close to the Consortium, LongRiver will walk away from the proposed US$8.2 billion takeover bid for Severn Trent unless the latter starts discussion with the consortium.
The LongRiver Consortium includes Kuwaiti sovereign wealth fund, Borealis Infrastructure, Britain's Universities Superannuation Scheme and a part of the Canadian pension fund, OMERS. The offer for Severn Trent was increased to 2200 pence per share on Friday.
Severn Trent has a total of 7.7 million clients mainly in central England and western Wales. On late Friday, Severn Trent rejected the said proposal stating the Consortium failed to show long-term value and future potential for the water utility company.
A source told Reuters that if Severn Trent does not discuss with the Consortium, no further deals will take place. Same source also stated that no talks were made between two parties since May 14.
In accordance with the UK takeover rules, the Consortium is given until June 11 to make its formal proposal or walk away.