June 21, 2015 / 12:25 PM / in 2 years

Canada's Borealis renews pursuit of Severn Trent: Sunday Times

LONDON (Reuters) - Canadian investment firm Borealis Infrastructure is considering a 5 billion pound ($8 billion) bid for Severn Trent (SVT.L), the Sunday Times reported, two years after the British water utility rejected its previous approach.

A Severn Trent sign hangs on a gate at Cropston Reservoir in Cropston, central England, May 15, 2013. REUTERS/Darren Staples

The newspaper reported that the two sides opened talks last month and discussions were still at an early stage.

In 2013 Severn Trent rejected a series of takeover offers by LongRiver Partners, an investment fund consortium including Borealis Infrastructure, saying they did not reflect the firm’s long-term value.

Severn may be more susceptible to a bid now, the newspaper said citing sources close to the situation, as the industry regulator has imposed tighter profit rules for the next five years and the company has also had a change of chief executive.

Reporting by Kylie MacLellan; Editing by Hugh Lawson

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