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Pennon mulling bid for Southern Water - Times
16th Nov 2020 11:52
(Sharecast News) - Pennon is said to be mulling a potential bid for embattled rival Southern Water.
The owner of South West Water is keen to reinvest the £3.7bn of cash netted by the sale of Viridor, its solid waste unit, into inorganic growth instead of returning it immediately to shareholders, The Sunday Times reported.
Under its new boss, Susan Davy, the company had reportedly also run the rule over Wessex and Bristol Water, but its preferred acquisition target was thought to be Southern.
Southern has been buffeted in recent years by news of sewage leaks, a hefty £126m fine levied in 2019 and scrutiny of its dividend policy, leverage and the decision to at one point halve annual contributions to its pension scheme.
As of 1148 GMT, shares of Pennon were 0.1% higher to 1,042.5p.
The owner of South West Water is keen to reinvest the £3.7bn of cash netted by the sale of Viridor, its solid waste unit, into inorganic growth instead of returning it immediately to shareholders, The Sunday Times reported.
Under its new boss, Susan Davy, the company had reportedly also run the rule over Wessex and Bristol Water, but its preferred acquisition target was thought to be Southern.
Southern has been buffeted in recent years by news of sewage leaks, a hefty £126m fine levied in 2019 and scrutiny of its dividend policy, leverage and the decision to at one point halve annual contributions to its pension scheme.
As of 1148 GMT, shares of Pennon were 0.1% higher to 1,042.5p.