Severn Trent stocks drenched by consortium bid rejection, falling nearly 10 per cent

Shares in utility company Severn Trent are down by 9.7 cent after a consortium which had fielded multiple takeover proposals walked away from the company.

LongRiver Partners – comprising the Kuwait Investment Office, Borealis and the Universities Superannuation Scheme – had its third bid of 2,200p per share rejected on 7 June, after Severn Trent claimed it was not fair value.

The consortium must now wait six months if it wants to make a fresh bid, having refused to engage in negotiations before a 5pm deadline yesterday.