Thames Water investors offer golden share to avoid nationalisation
6 reported
A consortium of investors pursuing a rescue bid for Thames Water has offered the government a “golden share” in an effort to prevent Prime Minister Andy Burnham from nationalising the company. London & Valley Water (L&VW), a group of 100 institutional investors holding £17bn of Thames Water’s £21bn debt, said it recognised the new prime minister wanted greater public control and accountability. The creditors said on Tuesday they were working on a revised rescue package that would give the government a veto over important decisions and hostile takeovers. The GMB union criticized the proposal, stating that public ownership is needed because private sector owners have failed consumers, the environment, and the workforce. L&VW’s proposed £10bn rescue deal includes a commitment that investors will not take a dividend for 10 years, or until Thames Water becomes a publicly listed company, and a pledge to expand the social tariff to reduce bills for struggling households. The offer follows reports that Burnham is planning to put the company into a special administration regime, a form of temporary public ownership. On Tuesday, Thames Water implemented a temporary hosepipe ban.
What’s reported
L&VW is a consortium of 100 institutional investors holding £17bn of Thames Water’s £21bn debt.
The consortium offered a “golden share” to give the government veto power over important decisions and hostile takeovers.
The GMB union said the arrangement would not be enough and called for public ownership.
L&VW’s proposed £10bn rescue deal includes no dividends for 10 years or until Thames Water becomes publicly listed, and an expanded social tariff.
Reports indicate Burnham is planning a special administration regime, a form of temporary public ownership.
Thames Water implemented a temporary hosepipe ban on Tuesday.
Key figures
Andy Burnham, prime minister
Gary Carter, national officer at the GMB union
Emma Reynolds, former environment secretary (replaced on Monday)
Angela Eagle, new environment secretary
Daniel Křetínský, Czech billionaire (mentioned in context of Royal Mail golden share)
Sources: The Guardian
