United Utilities, Severn Have 40% Premia Bid Potential, DB Says
2014-06-16 07:54:07.108 GMT
By Nadine Skoczylas
June 16 (Bloomberg) -- Deutsche Bank continues to see
potential for bids in U.K. water sector after completion of
price review by U.K. regulator Ofwat, in note dated June 13.
* Based on broker’s analysis, possible bidder could pay GBP25
per share for Severn Trent, GBP10/shr for Pennon and
GBP11.5/shr for United Utilities, 25%-30% above current
prices
* Deutsche Bank sees premia approaching 40% possible for
United Utilities, Severn; potentially 50% for Pennon’s
South West Water
* Severn, United Utilities will resubmit business plans
for 2015-2020 period to Ofwat on June 27, with initial
determinations on Aug. 29
* Final determinations due in Dec. w/new prices from April
1
* Particularly important for United Utilities due to gap
between its cost ests. and Ofwat’s
* United Utilities down 0.6% today after closing up 0.7% on
June 13; Pennon down 0.3% and Severn falls 0.1%
* NOTE Jan. 29: Analysis of Bloomberg data found that
dealmaking in U.K. water sector tends to increase only after
Ofwat completes a price review
For Related News and Information:
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To contact the reporter on this story:
Nadine Skoczylas in Jerusalem at +972-2-640-1103 or
nelsibai@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Gaurav Panchal
2014-06-16 07:54:07.108 GMT
By Nadine Skoczylas
June 16 (Bloomberg) -- Deutsche Bank continues to see
potential for bids in U.K. water sector after completion of
price review by U.K. regulator Ofwat, in note dated June 13.
* Based on broker’s analysis, possible bidder could pay GBP25
per share for Severn Trent, GBP10/shr for Pennon and
GBP11.5/shr for United Utilities, 25%-30% above current
prices
* Deutsche Bank sees premia approaching 40% possible for
United Utilities, Severn; potentially 50% for Pennon’s
South West Water
* Severn, United Utilities will resubmit business plans
for 2015-2020 period to Ofwat on June 27, with initial
determinations on Aug. 29
* Final determinations due in Dec. w/new prices from April
1
* Particularly important for United Utilities due to gap
between its cost ests. and Ofwat’s
* United Utilities down 0.6% today after closing up 0.7% on
June 13; Pennon down 0.3% and Severn falls 0.1%
* NOTE Jan. 29: Analysis of Bloomberg data found that
dealmaking in U.K. water sector tends to increase only after
Ofwat completes a price review
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Nadine Skoczylas in Jerusalem at +972-2-640-1103 or
nelsibai@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Gaurav Panchal