Revised takeover bid rejected by Severn Trent

<p>Severn Trent has turned down a second takeover bid.</p>

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.

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