WATER COMPANY TAKEOVER: A proposed takeover of water company Severn Trent collapsed when a Canadian-led consortium pulled out, days after its final £5.3 billion offer was rejected. LongRiver announced it had walked away from any deal shortly after a 5pm deadline today. The consortium, led by Canadian investment group Borealis, was spurned for a third time on Friday, hours after tabling a revised proposal worth 2200p a share – a valuation deemed too low by the Severn board. Yesterday LongRiver had threatened to pull the plug, saying there would be no new proposal until there had been “meaningful engagement” with Severn’s board. Severn, which supplies 4.2 million customers across parts of Wales and the Midlands and has said LongRiver’s proposals failed to recognise the long-term value or future potential of the company. It has been reported that an increase of around 40p a share would have been enough to bring Severn to the table, although LongRiver was determined that there must be a meeting with the water firm’s board before any move could take place. Under Takeover Panel rules, LongRiver had to decide whether to put in a new, fourth offer today or walk away.
Posted on: Tue, 11 Jun 2013 18:14:38 +0000
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