‘Infrastructure funds circling United Utilities’

UNITED Utilities, the Warrington-based water services group, is reportedly a takeover target for a consortium of infrastructure funds, who are weighing-up a £8bn-£10bn bid.

The FTSE 100 member, which with a market capitalisation of just under £5bn, is the North West’s biggest listed company by some distance, has seem its share price rise steadily over the last three months.

According to The Telegraph, citing City talk, Global Infrastructure Partners
which owns Gatwick, London City and Edinburgh airports – has teamed up with Canadian investors Ontario Teachers’ Pension Plan (OTPP) and Borealis to mount the bid for UU.

The newspaper said the consortium is being advised by Goldman Sachs while JP Morgan is willing to provide £5bn of financing for the deal, while each infrastructure fund may stump up £1bn of equity capital to fund the takeover.

Under the leadership of chief executive Steve Mogford, UU has focused on improving customer service, while also delivering strong financial results.

In the six months to the end of September profirts rose 2.6% to £189.7m,  while turnover was nearly 4% ahead at £822.9m.