Yorkshire Water owner Kelda has said it has received a takeover approach valuing the business at about £3 billion.
In a rare piece of merger and acquisition activity, Kelda revealed it was the subject of interest from an infrastructure consortium backed by the investment arms of leading City firms Citigroup and HSBC.
The bid team indicated that Kelda shareholders would receive £11 a share, including a dividend for the half-year period to September 30. There is no certainty that an offer would be forthcoming, Kelda said.
Yorkshire Water, which has its headquarters in Bradford and employs 970 people in the district, is Kelda's principal UK subsidiary, providing water and waste water services to more than 4.7 million people and 140,000 businesses.
Kelda Group, previously named Yorkshire Water, was originally formed following water company privatisations in 1989.
Kelda shares jumped 15 per cent to 1075p after the company confirmed market speculation about the bid approach.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article