Partner Article

Canadian group rules out Northumbrian takeover

The Canadian pension fund which was widely tipped to be planning a takeover of North East utilities plc Northumbrian Water, has announced that it is not interested in acquiring the firm. Northumbrian’s shares jumped earlier this month as speculation rose that the Ontario Teachers’ Pension Plan - the largest pension fund in Canada - was preparing to increase its 26.7% share in the firm and take it private. However, a statement issued on Friday evening said: “Further to recent press reports [the company] does not intend to make an offer to acquire the entire issued share capital of Northumbrian Water.” The company had been reportedly planning a £1.7bn bid of Northumbrian which would follow other heavyweight utilities deals for UK firms including Thames Water, which was bought by a group of funds led by Australia’s Macquarie bank in December 2006, and Southern Water, in a deal agreed with JP Morgan in 2007.

This was posted in Bdaily's Members' News section by Ruth Mitchell .