LONDON -- The board of Severn Trent (LSE: SVT ) this morning announced that it has rejected another bid from the LongRiver group attempting to take it over.
In mid-May, a bid was made by a consortium made up of Borealis Infrastructure Management, the Kuwait Investment Office, and Universities Superannuation Scheme Limited -- and swiftly rejected.
Today's news revealed that LongRiver has returned with an improved offer at a price of 2,125 pence per Severn Trent ordinary share. However, the statement claimed that the revised proposal "assumed that the 45.51 pence per share final dividend already announced in respect of the year ended 31 March 2013 was not paid to shareholders. If the announced final dividend was paid to shareholders, then the Revised Proposal valued each ordinary share at 2,079.49 pence."
Representing a premium of just 16% to the share price the day before the announcement of LongRiver's interest, the board decided to reject the latest terms on the basis that it still doesn't "reflect the significant long term value of Severn Trent or to recognise its future potential," citing its attractive yield and inflation-linked business model in particular.
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