Water company Severn Trent has rejected a higher takeover offer worth around £5 billion from a group of international investors.
In a statement, the supplier said LongRiver’s interest “fails to reflect the significant long term value” of the company “or to recognise its future potential”. The news follows a previous rejection worth around £4.96 billion last month.
Andrew Duff, Chairman of the water company said:”Our business benefits from long term inflation-linked revenues, good prospects for further capital investment and a strong record of improving operational performance.
“The Board unanimously believes that LongRiver’s revised conditional proposal at 2,079.49 pence per share, excluding the final dividend which we have already announced, fails to value the attractions to Severn Trent’s shareholders of Severn Trent’s increasingly rare combination of yield, inflation-linked business model and potential.”
The company provides water and sewerage services to more than 4.2 million households and businesses in the Midlands and Wales.