Analysts expect third and final bid for Severn Trent

City analysts have predicted that the deal for Severn Trent will still be inked and that a third bid will now be tabled despite the rejection of a revised £4.96 billion takeover bid for the water utilities provider.

Following the rejection of the modified offer of £21.25 per share from the LongRiver Consortium led by Borealis, Severn Trent’s share price only suffered a modest drop, leading analysts to pAredict a third and final takeover approach.

Tina Cook, analyst at Charles Stanley, said: “The modest share price reaction to the news suggests a third offer remains a possibility before the ‘put up or shut up’ deadline on 11 June.”

Lakis Athanasiou, utilities analyst at Agency Partners, said: “It’s very likely that [LongRiver] will come back with a full and final offer and as long as it’s not derisory then Severn Trent really have no option but to accept, frankly.”