Severn Trent fumbles as Borealis exits proposal
Severn Trent Plc (SVT) suffered in London trading after being left behind in a previous agreement to pursue Borealis Infrastructure Management Inc. The water utility and its Kuwaiti-British partners abandoned the deal previously slated at 5.3 billion pounds ($8 billion).
Severn Trent dropped by 9.8 percent, its deepest fall since 2006.
The Kingdom of Kuwait's sovereign wealth fund stated that they did not push through with the proposal due to failure of "meaningful engagement" between them and Severn Trent. The British company recently rejected Kuwait's padded offers, which came after another rejection from the sovereign wealth fund early this month.
"For the management not to have grabbed this with both hands I found astonishing," said Lakis Athanasiou, an analyst from Agency Partners LLP in London via phone interview.
This week alone, Severn Trent Plc devalued by 14 percent, dropping at 1,778 pence 11:45, London. SVT stocks slipped today as well.