Lenders holding most of Thames Water's debt have offered the UK government a 'golden share' granting veto power over major decisions and hostile takeovers, in a revised bid to prevent nationalisation after a previous £10 billion rescue proposal was rejected.
The London & Valley Water consortium, representing about £17 billion of the utility's more than £20 billion debt, said the new plan would write off nearly half the debt and inject fresh capital while suspending dividends for 10 years or until a public listing. The group is also evaluating local public supervisory structures and has signalled a legal challenge if ministers proceed with nationalisation.
Prime Minister Andy Burnham has pushed for greater public control of the provider. The renewed negotiations came as Thames Water imposed a temporary hosepipe ban on Tuesday, citing an exceptionally warm and dry spring.