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| Version 3 | Version 4 |
|---|---|
| Thames Water to be sold for £8bn | Thames Water to be sold for £8bn |
| (about 10 hours later) | |
| A consortium led by Australian investment fund Macquarie has won an auction to buy UK utility Thames Water. | A consortium led by Australian investment fund Macquarie has won an auction to buy UK utility Thames Water. |
| Macquarie-led Kemble Water tabled an £8bn ($14.9bn) bid for Thames - owned by Germany's RWE - which represents a 20% premium on the group's value. | Macquarie-led Kemble Water tabled an £8bn ($14.9bn) bid for Thames - owned by Germany's RWE - which represents a 20% premium on the group's value. |
| The bid is thought to have beaten one from Qatar's Investment Authority. | The bid is thought to have beaten one from Qatar's Investment Authority. |
| Macquarie has been on the acquisition trail recently and has been linked to bids for airports operator BAA and the London Stock Exchange. | Macquarie has been on the acquisition trail recently and has been linked to bids for airports operator BAA and the London Stock Exchange. |
| Earlier this year, Macquarie successfully bought out the London bus operations of Stagecoach in a £263.6m deal. | Earlier this year, Macquarie successfully bought out the London bus operations of Stagecoach in a £263.6m deal. |
| RWE's supervisory board must now give its backing to the bid and its executives are expected to meet to discuss the offer over the weekend. | RWE's supervisory board must now give its backing to the bid and its executives are expected to meet to discuss the offer over the weekend. |
| Once the deal is approved, Macquarie said it would deliver further information about the "transaction and its ambitions and plans for this important business". | Once the deal is approved, Macquarie said it would deliver further information about the "transaction and its ambitions and plans for this important business". |
| 'Debt question' | 'Debt question' |
| The BBC's business editor Robert Peston said that the big question now would revolve around how much debt Macquarie would run up on Thames. | The BBC's business editor Robert Peston said that the big question now would revolve around how much debt Macquarie would run up on Thames. |
| "When Macquarie buys assets, it tends to load them up with borrowings," he said. | "When Macquarie buys assets, it tends to load them up with borrowings," he said. |
| "Thames Water has a very big investment programme to implement and regulators will look to check that the debt on that programme to improve pipelines will be paid." | "Thames Water has a very big investment programme to implement and regulators will look to check that the debt on that programme to improve pipelines will be paid." |
| Thames Water supplies water to eight million people across London and the south of England, and provides sewage services to 13 million customers. | |
| The group has drawn widespread criticism in recent months - particularly after it announced a 31% rise in pre-tax profits to £346.5m in June. | The group has drawn widespread criticism in recent months - particularly after it announced a 31% rise in pre-tax profits to £346.5m in June. |
| It attracted ire from regulators for missing its water leakage targets for the third time in a row, while consumers were angered by its decision to implement a hosepipe ban during the long, hot summer. | |
| RWE, which also has interests in gas, electricity and recycling, bought Thames Water for £4.8bn in 2000. | RWE, which also has interests in gas, electricity and recycling, bought Thames Water for £4.8bn in 2000. |