Down today (ex big div) but severn trent seem to have an almost perfect large inverse H&S beginning in mid Jul and completing last week. 680ish is going to be an interesting level either way.

Statement re Ofwat's consultation on s13 proposal

Severn Trent has today written to Ofwat regarding the proposed changes to Severn Trent Water's Licence, published on 26 October 2012.

Whilst Severn Trent Water is minded to accept Ofwat's proposed change to its licence, the company believes it would be better if the current proposals were modified.

In response to Ofwat's clarification note published earlier this week, the company has made constructive suggestions to overcome concerns regarding the prospect of losing 40 per cent of revenue from wholesale price controls and lack of clarity about how future prices would be controlled.

The company believes that these suggested changes would still give Ofwat the flexibility required to drive the significant reform of the industry which Severn Trent continues to be supportive of.

Severn Trent publishes its Interim Results to 30 September 2012 on Tuesday 27 November.

Half Yearly Report

Highlights

● Financial results in line to deliver full year expectations

● Additional £150 million investment programme already delivering operational improvements to the benefit of customers

● Leakage, pollution incidents and SIM score all improving*

● On track to deliver improved serviceability for water distribution network and improvement in Ofwat KPI performance for this year

● Non-regulated part of the group showing a positive trend

● Responded to Ofwat proposed licence modifications with constructive suggestions to reduce uncertainty

Is it just my W/list or are most shares having a rest today? apart from this one which is up 1.5% at the mo.

Stan - take a look at VOD :-)

Oh yeah.. I sit corrected -):

Interim Management Statement

Regulated business
Performance in our regulated business for the period since November 2012 has been largely as expected and outlook for the full year remains as previously indicated.

Total revenue for the full year should be in line with current market expectations although consumption across our measured income base has continued to decline period on period, driven by lower commercial consumption.

Operating expenditure continues to be in line with management's expectations for the year and on a like for like basis in line with the level of the Final Determination. Operating costs are expected to rise year on year, due to the impact of inflation, a full year of operating private drains and sewer assets, and increases in quasi taxes, offset by efficiency improvements.

We continue to forecast a bad debt level around 2.2% of turnover for the full year, although we continue to monitor future developments closely, especially unemployment levels and changes to the UK benefits system

Expectations for net capital expenditure (UK GAAP after deducting grants and contributions) will be towards the low end of the £555 million to £565 million range previously guided, including an estimated £10m related to private drains and sewers. The level of net infrastructure renewals expenditure included in this range is anticipated to be £140 million to £150 million.

On 18 January 2013 Severn Trent Water announced it had accepted the Section 13 Notice issued by Ofwat on 21 December 2012, setting out proposed changes to its licence.

Non-regulated business
As previously guided, on a like for like basis Severn Trent Services ongoing business (Water Purification and Operating Services) is expected to deliver mid single digit revenue growth for the full year, with PBIT impacted by investment in Operating Services andBALPURE®, which will offset the underlying growth in the business.

Group
The group interest charge is now expected to be broadly flat year on year (vs. previous guidance of slightly lower), before adjustments related to pension accounting. The non-cash interest charge will be higher than previously forecast as RPI outturned higher than expected in December 2012, but remains lower year on year. This reduction in the non-cash charge will now be fully offset by a higher cash interest cost due to a higher level of net debt over the year and the cost of carry from the recent successful bond issue. In January the group raised £500m from a 13 year bond issue, at a coupon of 3.625%, which was five and a half times subscribed and is the largest sterling bond that Severn Trent has issued.

The expected effective current tax rate for the group for 2012/13 remains at 24% to 26%.

On 17 January 2013 Ofwat announced it had accepted binding commitments from Severn Trent Plc, offered to address concerns raised by Ofwat following a complaint under the Competition Act. As a result, the investigation has been closed without any findings being established in respect of the allegations made in the complaint.

On 8 February Severn Trent Plc announced the sale of Severn Trent Analytical Services (also known as Severn Trent Laboratories) to ALS Limited.

Severn Trent Plc will announce its Preliminary results for the period ending 31 March 2013 on 30 May 2013.

Been a VG year for extracting money from this lot, must do it again later this summer.

Approaching an 8 year high so far today.

Statement re Press Speculation

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

14 May 2013

Severn Trent Plc ("Severn Trent")

Confirmation of approach

The Board of Severn Trent notes the recent press speculation concerning the possibility of an offer being made for the whole of the issued share capital of Severn Trent.

The Board of Severn Trent announces that it has received an approach with a view to making a proposal from a consortium made up of Borealis Infrastructure Management Inc., the Kuwait Investment Office and Universities Superannuation Scheme Limited (together, the "Consortium"). This may or may not lead to an offer being made for Severn Trent.

This approach is at a very early stage, no proposal has been made and there can be no certainty that an offer will be made or as to the terms of any such offer, should one be forthcoming.

In accordance with Rule 2.6(a) of the Code, the Consortium is required, by not later than 5.00 p.m. on 11 June 2013, to either announce a firm intention to make an offer for Severn Trent in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.

A copy of this announcement will be available at www.Severn Trent.com/investors.

The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.

An approach to a possible takeover http://www.moneyam.com/action/news/showArticle?id=4593887

Rejection of Possible Offer

Rejection of proposal

Further to our announcement of 14 May regarding an approach by a consortium comprising Borealis Infrastructure Management Inc., the Kuwait Investment Office and Universities Superannuation Scheme Limited (together, the "Consortium"), representatives of Severn Trent met representatives of the Consortium today for the first time.

At that meeting, a conditional proposal was tabled by the Consortium (the "Proposal") at only a modest premium to the share price before the announcement of 14 May. The Board of Severn Trent has reviewed the Proposal with its advisers and concluded that it completely fails to recognise the existing and potential value of Severn Trent.

Accordingly the Board has informed the Consortium that it has rejected the Proposal.

Not enough offered, maybe some mileage in this one then.

Credit Suisse Neutral 2,055.50 1,530.00 1,530.00 Reiterates

Finals out Thursday on these and the current bidders have until 11th June to up their bid or walk away. Anyone here got these at the moment?

Final Results

Highlights

● Delivering on dividend policy - 8.2% growth vs. 2011/12
● Total shareholder return in the current regulatory period (AMP5)1 - 72%
● Creating long term value through efficient investment - £555 million invested this year
● Continued growth in RCV2 from £7,089 million to £7,364 million (+3.9%)
● Delivered significant operational improvements and higher levels of customer service

○ Improved or stable performance on 13 out of 14 Ofwat KPIs year on year

○ Customer satisfaction (SIM score) improving

● Efficiency improvements at Severn Trent Water helping to offset additional infrastructure investments
● Non-regulated business delivered revenue growth year on year3
● Well prepared for next price review
● Full year dividend for 2013/14 set to be 80.40p, up 6% in line with current RPI+3% growth policy

New offer of £22 http://www.moneyam.com/action/news/showArticle?id=4610255 How come the current SP is only just over £21 then?

I think a proviso of the original offer was that the dividend (45.51p - ex on 19th) would not be paid.

Not enough.. we want more http://www.moneyam.com/action/news/showArticle?id=4610693

Bidder for Severn Trent set to walk as deadline looms

LONDON | Tue Jun 11, 2013 11:14am BST
(Reuters) - British water company Severn Trent will see its suitor walk away on Tuesday unless it starts last-minute talks with the Canadian-led consortium whose three previous approaches it has spurned.

A deadline of 5:00 p.m. British time has been set by Britain's mergers and acquisitions regulator for the LongRiver consortium to make a formal offer for the utility or withdraw its interest.

Some major shareholders have urged the FTSE 100 company to open negotiations with the consortium in an attempt to elicit a higher offer than the 22 British pounds per share it rejected late on Friday.

May buy in now.