Severn Trent Plc (SVT), the U.K.’s second-largest publicly traded water company, rejected a takeover approach from Kuwait’s sovereign wealth fund and a Canadian infrastructure investor.
The proposal “completely fails to recognize the existing and potential value of Severn Trent,” the company said in a statement. Severn Trent, which supplies water to 7.7 million people, has a market value of 4.9 billion pounds ($7.5 billion).
The shares jumped the most in 4 1/2 years yesterday after The Kuwait Investment Office, Borealis Infrastructure Management Inc. and Britain’s Universities Superannuation Scheme approached the utility regarding a possible takeover. Pennon Group Plc (PNN) and United Utilities Plc also rose on speculation other bidders may be attracted by the stable returns water companies offer.
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