Takeover approach rejected by Severn Trent

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

Severn Trent has confirmed it has turned down a takeover approach, stating the offer that was made is not good enough to accept.

The company's share price jumped by 18 per cent in yesterday's (May 14th) trading on the back of the news that a consortium was preparing a bid.

But in a statement released today, the company said the proposal "completely fails to recognise the existing and potential value of Severn Trent".

Severn Trent is responsible for the supply of water to 7.7 million people in Wales and the Midlands and the value of the bid was reported to be in the region of £5 billion.

The share price of rival companies United Utilities and Pennon was up by around four per cent yesterday as rumours of a takeover of Severn Trent circulated.

Severn Trent's share price has slipped back by 32 points – a fall of more than 1.5 per cent – in today's trading after the takeover bid was turned down by the firm.

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