The consortium, made up of Borealis Infrastructure Management and the Kuwait Investment Office and Universities Superannuation Scheme, has been interested in Severn Trent for some time, and saw an initial bid rejected by the company in May.
Severn Trent said that the bid, at a premium of 16 per cent on the day before the announcement of LongRiver's interest, failed "to reflect the significant long term value of Severn Trent or to recognise its future potential."
Commenting on the Revised Proposal, Andrew Duff, the chairman of Severn Trent said:
Severn Trent is a high quality company with a record of long term delivery for shareholders and customers. Our business benefits from long term inflation-linked revenues, good prospects for further capital investment and a strong record of improving operational performance.
The Board unanimously believes that LongRiver's revised conditional proposal at 2,079.49 pence per share, excluding the final dividend which we have already announced, fails to value the attractions to Severn Trent's shareholders of Severn Trent's increasingly rare combination of yield, inflation-linked business model and potential.