Severn Trent Share Discussion Threads

[lateralam] 14/5/2013 10:15

Agree, the only way is down, total non news!

[miata] 14/5/2013 09:35

The large trades this morning:

Time Price Quantity Type Bid Offer Buy/Sell
14/05/2013 08:05 2125 62,366 UT 2125 2139 Sell
14/05/2013 08:36 2112 14,270 O 2112 2116 Sell
14/05/2013 08:45 2105 9,655 O 2105 2107 Sell
14/05/2013 08:50 2100 10,980 O 2101 2104 Sell
14/05/2013 08:50 2100 9,870 AT 2100 2104 Sell
14/05/2013 09:18 2086.64 25,570 O 2087 2088 Sell
14/05/2013 09:18 2075 23,620 AT 2075 2079 Sell
14/05/2013 09:28 2087 50,000 O 2088 2089 Sell
14/05/2013 09:29 2090 12,093 O 2090 2092 Sell
14/05/2013 09:32 2088.88 70,000 O 2095 2097 Sell

[tradermichael] 14/5/2013 09:26

How much/share would a bid be worth?

If the bid comes in at (suggested by media) £5.3 billion, that translates to 2208p/share

[moneysage] 14/5/2013 08:53

.....a great shorting opportunity has arisen!

[moneysage] 14/5/2013 08:52

this won't happen.....whens the last time we trusted the Arabs with our drinking water?!!

[skinny] 14/5/2013 07:23

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.

[miata] 03/5/2013 08:29

HSBC:
The Ofwat chairman's concerns on highly leveraged company structures may dampen M&A enthusiasm. We believe Ofwat is no longer structure-neutral so we believe prospective acquirers of UK water companies would be better to wait until further regulatory clarification is made on this point. We believe it is too far into the regulatory review to expect M&A activity in the short term.
Another dampening factor for the water companies is the prospect of them missing regulatory targets. HSBC said heavy rainfall had led to an increase in pollution incidents which could be taken into account when Ofwat considers any penalties for the companies. HSBC said:

We note that Severn Trent is still not meeting Ofwat's requirements for unplanned interruptions and serviceability of water infrastructure and is not meeting Ofwat's standards on eight metrics; United Utilities is failing on sewerage infrastructure serviceability; and South West Water (Pennon) is failing significantly on discharge permit compliance (satisfactory disposal of waste water) and pollution incidents.
The bank kept its overweight rating on Pennon, down 4.5p to 681p, but cut its target price to 775p from 780p. It downgraded Severn Trent, 5p lower at £18.16, from neutral to underweight following a strong performance, and raised its target price on United Utilities, up 5p to 745.5p, from 775p to 795p with a neutral rating.

[redartbmud] 27/2/2013 08:32

cyfran

Good find. Very interesting article.

Thanks

red

[cyfran101] 27/2/2013 00:12

Severn Trent have only seen the tip of the iceberg regarding the possibilities of making money from human waste derived methane. Big possibilities here.

[miata] 25/1/2013 17:07

Money moving from bonds into equities, some will come here.

[mali12] 25/1/2013 16:18

any ideas on which way now?

[miata] 01/12/2012 16:02

Going XD on Wednesday.

[miata] 27/11/2012 09:22

Profit before interest and tax fell 2.6% in the first half, reflecting planned increased investment in networks and customers service in its water division.

27 Nov Severn Trent PLC SVT Barclays Capital Equal weight 1,550.50 1,556.00 1,695.00 1,640.00

[miata] 24/11/2012 12:26

Water bills set to soar: Suppliers claim new industry rules will push up prices

Bills will rise by £33 each year until 2045 with average bill £1,000 higher

Regulator pushing through changes to way companies charge for supplies

The predicted increase means bills will rise by £33 each year until 2045 – so the average bill will be £1,000 higher.

At the moment, the regulator sets a maximum price ceiling for water bills overall. Under the changes, it would set a separate limit for each element of the bill, such as sewage, running call centres and maintaining pipes.
Critics say this will make the regime much more complicated, making it harder for banks to predict their revenue streams – thus increasing the interest they charge. This will be passed on to consumers in the form of higher bills.

Severn Trent said it was worried by the 'lack of clarity' of the planned new regime, while South West Water lambasted the plans as 'not in the long term interests of customers'.

Industry body Water UK said: 'Companies have considered these proposals carefully. 'The majority of companies have been unable to accept Ofwat's proposals in their current form due to widespread concern within the industry about their potential impact on investor confidence.'

[miata] 23/11/2012 16:26

Utilities stocks reacted to Tuesday's Ofwat statement in which it clarified some licence modification proposals following requests for more information from shareholders. The general consensus is that water suppliers do not agree with the proposals from the regulator, which said that it wanted to set segmental price controls.

United Utilities and Severn Trent both released statements today, calling for "modifications" to the current proposals.

"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."


Interim results next week.

[redartbmud] 21/11/2012 14:56

More of the same old joined up thinking by government, regulators etc etc then.
Do they not communicate with each other at all before issuing policy statements or inferences?

[miata] 21/11/2012 12:46

Ofwat clarified proposed changes to water companies' licences.

"The softening of Ofwat's stance on a Competition Commission referral reduces the near-term risk of negative newsflow," said analysts at JPMorgan Chase & Co.

[miata] 08/11/2012 10:24

Date Broker name New Price Old price target New price target Broker change
08-Nov-12 Nomura Neutral 1,529.00p 1,645.00p 1,550.00p Reiteration
31-Oct-12 Bank of America Neutral 1,606.00p 1,760.00p 1,540.00p DownGrade
03-Oct-12 JP Morgan Cazenove Neutral 1,665.00p 1,640.00p 1,610.00p Reiteration
11-Sep-12 Goldman Sachs Neutral 1,685.00p 1,755.00p 1,896.00p Upgrade
18-Jul-12 Investec Securities Hold 1,719.00p 1,664.00p 1,627.00p Reiteration

[miata] 05/11/2012 10:19

Water stocks leaked after Deutsche Bank said the sector looked fairly valued after three years of strength and voiced concern that regulatory risks were rising.

[redartbmud] 05/11/2012 10:09

MIATA

Here what you say. The banks are slowly putting their house in order. I suspect however that they will be drip feeding more provisions for current bad debts into their balance sheets for years to come. But, one cannot deny that they are making progress and at the same time having regulations thrown at them. Margins cannot be as good as a few years ago with interest rates so low, but they have been able to borrow large sums from the BofE at next to nothing. They must make a good turn on that, whilst limiting the amounts that they are lending.
I believe that many savers have committed more funds than they would normally do to high yield equities and fixed income investments to chase better rates. Should they be penalised for doing so?
It is a double whammy. We all know that the government is expecting savers to bale them out with inflation greater than current interest returns, but to cynically wipe out capital on top by throw away statements in parliament, given by people incapable of running a school tuck shop, is taking the biscuit.

red

[miata] 05/11/2012 08:59

So badly? The real question is why the shareprice of a regulated utility had risen by 20% this year ?

[redartbmud] 04/11/2012 22:42

Bank of America should stay over the pond and keep their snouts in their own murky busuness!

That aside, I thought that this government would support business and investors.
If they want state run utilities and banks, why don't they nationalize them?
They run the risk of investors walking away if they treat them so badly - surely Ms Spellman issued what could be deemed price sensitive information without giving it to the market first, so that it was available to all at the same time.

[miata] 02/11/2012 14:55

Come on down. I want some more.

[miata] 31/10/2012 10:02

Bank of America has lowered its target price for Severn Trent to 1540p from 1760p.

31-Oct-12 Bank of America Neutral 1,606.00p 1,760.00p 1,540.00p DownGrade