The battle for control of UK water firm AWG heated up yesterday despite the company's agreement of a £2.2 billion (€3.25 billion) offer from investment group Osprey.
AWG said it had received new bid approaches from unnamed third parties, sending its shares up more than 5 per cent to a record 1,629 pence - some 50 per cent above its level at the end of 2005.
AWG stock, which jumped on September 14th when it first revealed a bid approach, is trading well above Osprey's bid of 1,555p a share in cash, but AWG added that under the terms of the agreement, Osprey will have the right to match any competing offer without losing its board recommendation.
"There can be no certainty that an offer will be made by any of these third parties . . . In the meantime, the board of AWG reiterates its recommendation of the offer which has been made by Osprey," AWG said.
The offer by the investment group, comprising Canada Pension Investment Board, Colonial First State Global Asset Management, an asset management division of Commonwealth Bank of Australia, Industry Funds Management and 3i Group plc, represents a 0.6 per cent premium to Friday's close.
Osprey, which needs at least 75 per cent of voting rights to succeed, said that it has a 12.47 percent stake of the water company.
The offer values AWG, which supplies water and sewerage services to about 5.5 million people in eastern England, at 25.3 times its current year earnings forecast, which is considerably higher than the UK water and utilities average of 13.6.
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