Severn Trent Plc (SVT), the U.K.’s second-largest publicly traded water company, rejected a sweetened takeover offer from a group led by Borealis Infrastructure Management Inc., saying the proposal for 2,125 pence a share undervalues its stock.
The proposal from LongRiver Partners, which is a group that also includes the Kuwait Investment Office and Universities Superannuation Scheme Ltd., was detailed in a statement from Severn Trent today. The group’s offer assumes the final dividend of 45.51 pence wasn’t yet paid to shareholders.
The proposal “fails to reflect the significant long term value of Severn Trent or to recognize its future potential,” it said.
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