Takeover approach boosts Severn Trent stocks

<p>Severn Trent shares were up after a takeover approach.</p>

The share price of Severn Trent got a boost today (May 14th) on the back of the news a group of investors are preparing a takeover of the firm.

Its stocks were selling for more than 18 per cent compared to the start of the day at one point in the morning session, although those early gains have tailed off slightly during the afternoon.

Severn Trent said the consortium has not made a takeover proposal so far, adding: "There can be no certainty that an offer will be made or as to the terms of any such offer, should one be forthcoming."

United Utilities and Pennon also both saw their shares rise by more than four per cent as a result of the takeover news regarding Severn Water, reports BBC News.

The Dow Jones-owned newspaper Financial News suggested a bid for the company could be worth as much as £5.3 billion.

At 16:08 BST, shares in Severn Trent were trading nearly 13 per cent higher than the start of the day at 2,062.00, a jump of 237 points.

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