Severn Trent, a water utility based in the U.K., has rejected a preliminary takeover offer from a number of institutional investors, including Borealis Infrastructure, the infrastructure investment arm of OMERS.
“The board of Severn Trent has reviewed the proposal with its advisors and concluded that it completely fails to recognize the existing and potential value of Severn Trent,” the company said, without disclosing the offer price.
Reports say the consortium, which also includes the Kuwait Investment Authority and the U.K.’s Universities Superannuation Scheme, has made a bid of between £4.7 billion ($7.3 billion) and £5.3 billion ($8.2 billion).
The consortium is required by no later than June 11 to either announce a firm intention to make an offer for Severn Trent or make a statement that it does not intend to make an offer under U.K. takeover rules.
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