Consortium may end interest in water giant

The £5.3bn bid, valuing Severn at £22 a share, was dismissed by the firm’s board within hours of being tabled on Friday.

Severn, which supplies 4.2 million customers across the Midlands and parts of Wales, said it failed to recognise the long-term value or future potential of the company.

It means the LongRiver consortium must decide whether to put in a new, fourth offer before the expiry of tomorrow’s “put up or shut up” deadline or to walk away.

The bidders, Canadian investment group Borealis, the Kuwait Investment Office and Universities Superannuation scheme, 
previously had a £4.96bn bid rejected.

It is thought that the consortium has grown increasingly concerned at what it perceives as the water company’s lack of engagement with it.