Bid consortium says no new offer without Severn Trent talks

Mon Jun 10, 2013 2:12am EDT
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LONDON, June 10 (Reuters) - The consortium bidding for Severn Trent said on Monday it would not put forward a new offer unless the British water company's management engaged in talks.

The LongRiver consortium - made up of a Kuwaiti sovereign wealth fund, Britain's Universities Superannuation Scheme and Borealis Infrastructure, part of Canadian pension fund OMERS - made a raised 2,200 pence per share cash offer for the water utility on Friday.

Late on Friday, after the market close, Severn Trent rejected the proposal, saying it failed to reflect the long-term value and future potential of the company, which has 7.7 million customers mainly in central and western England and Wales.

Commenting on behalf of the Consortium, Michael Rolland, President and CEO of Borealis, said the Severn Trent board had shown no interest in discussing its offer.

"In the absence of any such engagement, there will be no further proposal from the consortium and no offer for Severn Trent shareholders to consider," he said.