LONDON - A consortium of investment firms raised its bid on Friday for the British water utility Severn Trent, days after the company rejected a previous offer.
The investment group, which includes the sovereign wealth fund Kuwait Investment Authority and the Canadian fund Borealis Infrastructure, offered £22 for each share of Severn Trent, or £5.3 billion ($8.2 billion).
The offer is a 3.5 percent increase from a previous £21.25-a-share bid that the British utility rejected on Monday and includes a 45.51 pence-a-share dividend to investors that Severn Trent’s board proposed last month.
The increased bid is the latest twist in the effort to control Severn Trent, which provides water and sewage services for more than four million customers in England and Wales. The investment firms made an initial offer for the company in May.
A spokesman for Severn Trent declined to comment on the revised offer, though the utility had said the previous bid, which valued the company at $7.7 billion, did not provide value for investors.
On Friday, the investment consortium said the proposed deal was dependent on approval from Severn Trent’s board.
Under British takeover rules, the group has until June 11 to decide whether to put forward a definitive approach for the utility or must walk away from the deal.
Shares in Severn Trent rose 4.7 percent, to £21.14, in afternoon trading in London on Friday.Â
Deutsche Bank is advising the investment consortium on the deal, while Rothschild and Citigroup are advising Severn Trent.
