Investors bid to buy Severn Trent

Water giant Severn Trent has rejected a second takeover offer worth about £5 billion from a group of international investors.

The firm, which supplies homes in Belper, said the revised proposal from LongRiver Partners failed to “reflect the significant long-term value of Severn Trent”.

Last month, the firm rejected an offer from the consortium – which includes the Kuwait Investment Authority – worth about £4.96 billion.

Chairman Andrew Duff said: “The board unanimously believes that LongRiver’s revised conditional proposal fails to value the attractions to shareholders of Severn Trent’s increasingly rare combination of yield, inflation-linked business model and potential.”

Last week, Severn Trent reported a 3.3% fall in annual pre-tax profits to £266.3 million, which the company blamed on increased investment in its network and a drop in use due to last year’s wet summer.