Hong Kong approach from Columbian

Northumbrian Water, which supplies 2.6m people in the North East and another 1.8m through Essex & Suffolk Water, has received a proposal from Cheung Kong Infrastructure Holdings, which is controlled by billionaire Li Ka-shing.

Shares in Northumbrian have increased by nine per cent this week after Cheung announced on Monday it was mulling an offer - reportedly to be for more than £2bn.

Utility companies are an attractive investment in the current environment because they offer a steady income and can put their prices to customers up in line with inflation.

Cheung already owns Cambridge Water and has a 4.75 per cent stake in Southern Water.