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| Version 4 | Version 5 |
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| Severn Trent shares surge after takeover approach | Severn Trent shares surge after takeover approach |
| (35 minutes later) | |
| Shares in the water company Severn Trent have surged after it confirmed a group of international investors was interested in buying it. | Shares in the water company Severn Trent have surged after it confirmed a group of international investors was interested in buying it. |
| Its shares jumped 18% in early trading to reach a record high before falling back to close up 13.8%. | |
| The investors include a Canadian infrastructure company and the Kuwaiti government investment fund. | The investors include a Canadian infrastructure company and the Kuwaiti government investment fund. |
| Severn Trent supplies water to about 7.7 million people in Wales and the Midlands. | Severn Trent supplies water to about 7.7 million people in Wales and the Midlands. |
| The firm confirmed that it had received the bid approach, but said it was "at a very early stage" and there was no certainty that an offer would be made. | The firm confirmed that it had received the bid approach, but said it was "at a very early stage" and there was no certainty that an offer would be made. |
| The consortium of potential bidders consists of Canada's Borealis Infrastructure, the Kuwait Investment Office, and Universities Superannuation Scheme - a UK pension fund. | The consortium of potential bidders consists of Canada's Borealis Infrastructure, the Kuwait Investment Office, and Universities Superannuation Scheme - a UK pension fund. |
| The Kuwait Investment Office is the UK branch of the Kuwait Investment Authority, which manages funds on behalf of the Kuwaiti state. | The Kuwait Investment Office is the UK branch of the Kuwait Investment Authority, which manages funds on behalf of the Kuwaiti state. |
| June deadline | June deadline |
| Severn Trent said the consortium had not made a takeover proposal yet. "There can be no certainty that an offer will be made or as to the terms of any such offer, should one be forthcoming," it said. | Severn Trent said the consortium had not made a takeover proposal yet. "There can be no certainty that an offer will be made or as to the terms of any such offer, should one be forthcoming," it said. |
| But an earlier report carried by the Dow Jones-owned newspaper Financial News suggested a bid could be worth £5.3bn ($8.1bn). | But an earlier report carried by the Dow Jones-owned newspaper Financial News suggested a bid could be worth £5.3bn ($8.1bn). |
| The surge in the share price has valued the company's equity at slightly below that figure. | The surge in the share price has valued the company's equity at slightly below that figure. |
| UK takeover rules mean the consortium must now decide whether or not to submit a formal bid for Severn Trent by 11 June. | UK takeover rules mean the consortium must now decide whether or not to submit a formal bid for Severn Trent by 11 June. |
| Severn Trent was formed following the privatisation of UK water authorities in 1989. | Severn Trent was formed following the privatisation of UK water authorities in 1989. |
| It is one of only three UK water companies still listed on the stock market. | It is one of only three UK water companies still listed on the stock market. |
| The other two are United Utilities and Pennon, and both saw their shares rise by more than 4%. | The other two are United Utilities and Pennon, and both saw their shares rise by more than 4%. |
| UK utility companies have proved to be popular investments for international investment firms looking for steady returns. | UK utility companies have proved to be popular investments for international investment firms looking for steady returns. |
| In 2006, Thames Water was bought by a consortium led by Australian investment group Macquarie and a Chinese sovereign wealth fund. | In 2006, Thames Water was bought by a consortium led by Australian investment group Macquarie and a Chinese sovereign wealth fund. |
| Yorkshire Water was bought in 2007 by a consortium including Citigroup and HSBC, along with Singapore sovereign wealth fund GIC. | Yorkshire Water was bought in 2007 by a consortium including Citigroup and HSBC, along with Singapore sovereign wealth fund GIC. |
| Canada's Borealis already owns stakes in UK utility and infrastructure companies, including Associated British Ports and gas provider Scotia Gas Networks. | Canada's Borealis already owns stakes in UK utility and infrastructure companies, including Associated British Ports and gas provider Scotia Gas Networks. |