No new offer from the LongRiver consortium, until talks with the board will be pursued. No meeting has taken place since last May 14. The latest offer was at 2,200 pence a share that gave the company a value of $8.2 billion. Severn Trent refused the offer as it did not reflect the long-term value as they have projected.
Both parties had until 12 noon, as imposed by their country's mergers and acquisitions regulator. Severn Trent had always been open to negotiations. But, LongRiver must in turn give a proposal reflective of the long-term value and potential of the company. Chairman of Severn Trent, Andrew duff said, "We have consistently made clear to the Consortium our belief that Severn Trent has a value to our shareholders above the level it indicated it was willing to pay."
"This difference in value has been at the heart of this process and the Consortium has either not been able, or willing, to bridge that value gap."
British utilities have been a secure and consistent source of cash flows.
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