UU shares at four year high on bid intrigue

SPECULATION in financial markets that an overseas infrastructure investor is looking at buying United Utilities has pushed shares in the company to a four-year high.

Warrington-based UU, the North West’s only FTSE 100 company, is according to industry watchers being eyed by investors including the Canadian pension fund Ontario Teachers and Qatari and Abu Dhabi infrastructure funds.

Shares closed on Tuesday at 722.5p, a rise of 4.86% or 33.5p, adding some £228m to UU’s market value of £4.7bn.

Talk in the City is of a possible bid priced around 900p per share, valuing the water company at £6.1bn, or 900p a share.

UU, which in recent years has sold its non-UK and non-water business interests, has declined to comment on the speculation.  The company supplies 3.2 million homes and businesses in the North West. Profits last year were £327m on revenues of £1.56bn.