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British water supplier Severn Trent faces possible bid


British water supplier Severn Trent said on Tuesday it had been approached by a consortium including Canadian and Kuwaiti investment companies regarding a possible bid, sending its share price surging.

"The board of Severn Trent announces that it has received an approach with a view to making a proposal from a consortium made up of (Canadian group) Borealis Infrastructure Management Inc., the Kuwait Investment Office and (British pension fund) Universities Superannuation Scheme Limited," said a statement.

"This may or may not lead to an offer being made for Severn Trent," it added.

Severn Trent's share price rocketed 14.68 percent to trade at 2,093 pence in morning deals, easily topping London's benchmark FTSE 100 index, which was trading 0.19-percent lower.