Severn Trent opens the taps in Dee Valley bidding war

UTILITIES group Severn Trent has made a second bid for Welsh water business Dee Valley, in the hope of seeing off rival Ancala.

Ancala had opened the bidding last month at £71.3m before Severn Trent came in with an offer that valued the company at £78.5m.

Ancala responded, going 1p-per-share higher on Tuesday, causing Severn Trent’s £84.0m bid this morning.

The Dee Valley board has now withdrawn its support for Ancala and is recommending Coventry-based Severn Trent’s offer.

Separately Severn Trent has today announced its underlying profit, before interest and tax, for the six months to September is up 3.1% to £278.4m. The rise is in line with the 3.2% increase in turnover, which grew to £906.8m.

Liv Garfield, chief executive of Severn Trent, said: “Our strategy of keeping our customers at the heart of the business and investing for the long-term is driving clear results. We remain committed to being the most trusted water company by 2020, by striving to provide outstanding customer experience, best-value service and environmental leadership.

 

“We are focused on the things that matter most to our customers while also maintaining the lowest bills in Britain. External sewer floodings are down 9% year-on-year, and we have almost trebled the number of vulnerable customers supported.”