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.

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.

Indeed Skinny, very interesting now.

Down around 9% which seems about where they were before takeover talk, may be further to fall so still watching.

Clearly -):

Beaufort Securities Buy 1,757.00 - - Reiterates

Citigroup Neutral 1,757.00 1,520.00 1,750.00 Reiterates

Barclays Capital Equal weight 1,757.00 - 1,765.00 Downgrades

Waste and water group Severn Trent slipped a further 11p at 1,754p after Barclays Capital downgraded the stock to equal-weight from overweight.

£17.50 seems a reasonable entry point, but could be wrong.

Divi out paying 45.51p. this week.

I've been filled @1,700p.

Nice one, can't see it going any lower today at least.

I hope so Stan - I must be honest - I forgot I'd put the limit in - well it was yesterday!

Interim Management Statement


The Board of Severn Trent Plc confirms that trading across the group has been in line with its expectations and prior guidance.

Regulated business
Customer prices in Severn Trent Water increased by 2.0% from 1 April 2013, reflecting November RPI of 3.0% and a k-factor of minus 1.0%. Consumption across our measured income base has declined year on year in the period, in line with our expectations.

Our forecasted bad debt level is maintained at around 2.2% of turnover for the full year, and we continue to monitor developments such as unemployment levels and changes to the UK benefits system closely.

Operating expenditure continues to be in line with the Board'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 and increases in quasi taxes, partially offset by efficiency improvements.

Expectations for net capital expenditure (UK GAAP after deducting grants and contributions) remain in the range £600 million to £620 million, including an estimated £15 million related to private drains and sewers. The level of net infrastructure renewals expenditure included in this range is anticipated to be £135 million to £145 million.

Non-regulated business
In Severn Trent Services we expect to see the benefits of our previous investments in growth areas. Growth will however be second half weighted as indicated by timing of deliveries from the Water Purification order book.

Group
The group interest charge is expected to be higher year on year due to higher net debt and with the adoption of revisions to IAS19 increasing the pension accounting interest charge. The year on year impact of this revision to IAS 19 is estimated at £13m.

The effective current tax rate for the group for 2013/14 is expected to remain between 23% and 25%.

Under our dividend policy of RPI+3% growth the dividend for 2013/14 is set to be 80.40 pence, representing growth of 6% year on year.

Other
In early May Severn Trent Plc received an approach from LongRiver Partners, a consortium led by Borealis Infrastructure Management, about a possible offer for the company. On June 11th LongRiver Partners confirmed that it did not intend to make an offer for Severn Trent Plc, and that it is bound by the restrictions under Rule 2.8 of the Takeover Code. In addressing this approach, the board of Severn Trent plc has incurred costs for advisory, legal and other services of approximately £19 million in aggregate.

Severn Trent Plc will announce its interim results for the period ending 30 September 2013 on 26 November 2013.

Morgan Stanley Underweight 1,549.50 1,546.00 1,185.00 1,185.00 Reiterates

L&G dip below 4% http://www.moneyam.com/action/news/showArticle?id=4671492