Severn Trent Spent $29 Million in Canadian-Led Takeover BattleRandall Hackley
Severn Trent Plc, the U.K. water company that spurned a 5.3 billion-pound ($8 billion) offer from a Canadian-led infrastructure group, said today that it incurred 19 million pounds in costs over the takeover approach.
LongRiver Partners, the group comprising Borealis Infrastructure Management Inc., a Kuwaiti sovereign wealth fund and Britain’s Universities Superannuation Scheme, walked away from its offer last month after two attempts starting May 14 to sweeten the bid were rejected as too low by Severn Trent.
The Coventry-based water company, Britain’s second-biggest by market value, supplies drinking water to 7.7 million people and sewer services to 8.7 million in the Midlands and Wales. It said in a trading update that advisory, legal and related costs “addressing this approach” totalled 19 million pounds.
Since the close of trading on May 13 before the takeover approach to today, Severn Trent shares have fallen 4.2 percent to 1,749 pence compared with a 1.5 percent decline by the FTSE 100 Index.