A second takeover bid has been rejected by Severn Trent, with the long-term future of the firm having not been taken into account by bidder the LongRiver consortium.
Borealis infrastructure, the Kuwait Investment Office and Britain's Universities Superannuation Scheme offered 2,079.49 pence per Severn Trent share in the takeover bid.
On the back of the news the takeover has been turned down by Severn Trent, shares in the firm were down slightly, falling eight points at 16:10 BST.
Chairman Andrew Duff stated the company's "increasingly rare combination of yield, inflation-linked business model and potential" have not been valued highly enough by the LongRiver consortium when it has put together its offer.
When the first takeover bid was made by the consortium on May 14th, the share price of Severn Trent rocketed by 18 per cent.
Severn Trent suppliers water to 7.7 million people in Wales and the Midlands.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.