LONDON - The battle for control of the British water utility Severn Trent continued on Monday after the investment group that offered $8.2 billion to buy the company said it would walk away from its bid unless Severn Trent entered into discussions.
The management of Severn Trent, which provides water and sewage facilities for more than 4 million people in England and Wales, has rejected the offer of £22, or $34.15, per share put forward by the investment firms, which include the sovereign wealth fund Kuwait Investment Authority and the Canadian fund Borealis Infrastructure.
Severn Trent said the takeover approach continued to under value the company, adding that it would be open to talks with the investment group if the firms increased their proposed offer to reflect ‘‘the long term value and future potential of Severn Trent.’’
In response, the investment firms said they would not put forward another offer if Severn Trent did not agree to meet over the proposals.
Under British takeover rules, the investment group has until Tuesday to outline an official offer or must walk away from the potential deal.
Severn Trent’s share price fell 5.3 percent, to £19.60, in early morning trading in London on Monday.
Deutsche Bank and RBC are advising the investment firms on the deal, while Rothschild and Citigroup are advising Severn Trent.
