Consortium raises Severn Trent bid to £5.3bn

Suzie Neuwirth

LONGRIVER Partners today raised its offer for Severn Trent to £5.3bn, ahead of the 11 June ‘put up and shut up’ deadline.

The consortium of investors, comprising the Kuwait Investment Office, UK pension fund the Universities Superannuation Scheme and Canada’s Borealis Infrastructure offered 2,200p per share, inclusive of a pre-announced final dividend of 45.51p.

LongRiver had until 11 June to make a third offer for the FTSE 100-listed firm, after its second bid of £4.96bn was rejected on 3 June.

The consortium said that the new offer offers “certain and compelling value” for Severn Trent’s shareholders.

Severn Trent shares were up 3.6 per cent at 16.08 GMT.

“The positive share price reaction to the news implies that the market believes a deal is possible,” said broker Charles Stanley.