Investors still expect Severn Trent deal

 
Suzie Neuwirth
SEVERN Trent’s share price remained relatively unchanged yesterday, despite the water supplier’s refusal of a takeover bid from a consortium of investors on the grounds that it undervalues the company.

“The market is still confident that the deal will happen,” Chris Beauchamp, analyst at IG Group, told City A.M. “Previous water company takeovers were successful and utilities continue to be very attractive assets.”

The FTSE 100 company’s shares rose a modest 13p yesterday.