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| Severn Trent rejects takeover approach | Severn Trent rejects takeover approach |
| (35 minutes later) | |
| Water supplier Severn Trent has rejected a preliminary takeover offer from international investors. | Water supplier Severn Trent has rejected a preliminary takeover offer from international investors. |
| In a statement, the company said the proposal "completely fails to recognise the existing and potential value of Severn Trent". | In a statement, the company said the proposal "completely fails to recognise the existing and potential value of Severn Trent". |
| It did not reveal details of the offer, but earlier reports suggested it could value the business in excess of £5bn. | |
| The approach was made by a consortium led by a Canadian infrastructure firm and a Kuwaiti investment fund. | |
| Severn Trent supplies water to 7.7 million people in Wales and the Midlands. | |
| It was privatised along with other UK water boards in 1989, and it is the latest UK water company to be targeted by private investors. | |
| Severn Trent said it had met the consortium for the first time on Tuesday, having earlier made an announcement confirming the approach. | |
| "At that meeting, a conditional proposal was tabled by the consortium at only a modest premium to the share price before the announcement [of the approach]," Severn Trent said. | |
| News of the approach caused Severn Trent's share price to jump by nearly 14% in trading on Tuesday. | |
| The consortium consists of Canada's Borealis Infrastructure, the UK arm of the state-backed Kuwait Investment Authority, and the Universities Superannuation Scheme - a pension fund. |