THAMES WATER launched a last-ditch bid to avoid being nationalised — by offering Andy Burnham’s Government a “golden share”.
The new PM is believed to be looking at taking over the debt-laden company, after signalling he wants to introduce a ten-year plan to renationalise the water industry.
Thames Water launched a last-ditch bid to avoid being nationalised — by offering Andy Burnham’s Government a ‘golden share’ Credit: Alamy
The new PM is believed to be looking at taking over the debt-laden company Credit: EPA
It comes after the Government recently rejected a £10billion rescue deal by Thames Water’s lenders, saying it did not go far enough to protect customers or the environment.
A “golden share” would give ministers the power to veto big decisions by the company, which has around 16million customers across London and the South East.
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This would include foreign takeovers and major asset sales.
The Government holds golden shares in a number of privatised companies of national importance, such as Royal Mail.
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London & Valley Water — a consortium of lenders that holds most of Thames Water’s debts — said it “recognises” the need for the firm to show more “accountability”.
It added it wanted to discuss “new local public control supervisory structures . . . alongside additional commitments that could be implemented through a golden share”.
A rescue plan by creditors is seen as the final realistic option to avoid Thames Water being placed into a special administration, as it struggles under a £20billion debt pile.
STORE INFLATION EASING
GROCERY prices are rising at their slowest rate in almost two years.
Prices were 2.6 per cent higher than a year ago in the four weeks to July 12 — down from June’s 3 per cent and the lowest rate since December 2024.
The figures from Worldpanel show a fifth consecutive month of easing prices, although the average household spent £5,530 on groceries in the 12 months to July — £156 higher than a year earlier.
Worldpanel said it is a “reminder even as the rate of inflation cools, the cumulative cost of the weekly shop is climbing”.
ASH BOSSES IT
MIKE Ashley’s Frasers Group has boosted its stake in Hugo Boss as it bids to take over the German fashion group.
The retail giant, which also owns Sports Direct, told investors that it now owns 30 per cent of the brand, after buying another 2.55million shares.
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MITIE MERGER
MITIE has agreed a £3.1billion takeover deal that will create one of Britain’s biggest private sector employers.
The company, which sells services like security and cleaning for the public and private sector, said it had accepted an offer from rival OCS Group.
The deal will see each Mitie shareholder offered up to 221.6p per share — worth 151p on Monday — a premium of 45 per cent.
