Kelda unveils offer terms

The board of Kelda, which owns Yorkshire Water, has recommended a £3.04bn (US$6.23bn) offer from a financial consortium called Saltaire Water.

This consists of Citigroup and HSBC as well as several smaller parties, such as GIC and Infracapital Partners.

Saltaire Water will pay Kelda shareholders 1,100.65p a share in cash and dividends.

The news sent Kelda’s shares up 33p, or 3.1%, to 1089p.

Kelda was advised by Greenhill, Merrill Lynch and JPMorgan Cazenove.

Citi, Lexicon and HSBC are acting for Saltaire.