Water group AWG today confirmed it had dismissed a £902 million takeover approach for being too cheap.The Anglian Water owner said the verbal offer from investment bank WestLB "fell well short of an acceptable price".
Water group AWG today confirmed it had dismissed a £902 million takeover approach for being too cheap.
The Anglian Water owner said the verbal offer from investment bank WestLB "fell well short of an acceptable price".
In a brief statement AWG said it had received the preliminary verbal approach on January 31, valuing it at 510p a share or £902 million.
AWG shares closed on Friday at 428.5p but some brokers are reported to have a target price of 650p for the stock.
The deal will also need to overcome competition concerns because WestLB already owns Mid Kent Water.
AWG has significantly restructured its business in recent months, building up its support services and infrastructure management operations to cover not only the utility sector but also PFI and highway maintenance.
It has also ringfenced its core regulated water arm Anglian Water Services last summer to focus on the potential profits in support services.
Clients in its utility services division include Yorkshire Water and Scottish Power.
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