UK: Financial engineers welcome
- From: Vol 4, Issue 6 (June 2003)
- Category: Market insight
- Region: Europe
- Country: United Kingdom
- Related Companies: Aquarion, AWG, Kelda, Northumbrian Water, Pennon/South West Water, Severn Trent Water, United Utilities, WestLB and Yorkshire Water
Since last month’s flotation of Northumbrian Water Group, the London Stock Exchange offers a choice of six water-related investment vehicles. Although each faces the same regulatory regime in its core water business, the difference lies in their non-water interests and their financial structure. The alternatives offered to investors are as follows:
AWG: high leverage takeover play with interests in infrastructure management. The high leverage strategy enabled the company to expand its infrastructure side with the acquisition of Morrison Plc, a move which proved disastrous to shareholders’ interests, with the result that the company became a takeover target and lost its chief executive. The recent weakness in the share price relates to ...
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