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Thames Water investors offer a golden share to avert nationalisation
The consortium behind the rescue bid holds £17bn of Thames Water’s £21bn debt and says its plan includes a government veto over key decisions and hostile takeovers.
Thames Water investors pursuing a rescue bid have offered the British government a “golden share” in a bid to head off plans by Prime Minister Andy Burnham to take greater public control of Britain’s biggest water company, according to the Guardian Business.
The consortium, London & Valley Water (L&VW), said it is working on a revised rescue package that includes the golden share, which would give the government a veto over important decisions and hostile takeovers. L&VW said it recognizes Burnham’s preference for greater public control and stronger accountability for the utility.
L&VW’s proposed £10bn rescue deal includes commitments to forgo dividends for 10 years, or until Thames Water becomes publicly listed, and to expand the company’s social tariff to reduce bills for struggling households.
The improved offer follows reports that Burnham is considering putting Thames Water into a special administration regime, a form of temporary public ownership, which the creditors say could shift costs to taxpayers, with a potential bill of up to £2bn.