Investors pursuing a rescue of Thames Water have offered the government a 'golden share' granting veto powers over major decisions, in a last-ditch effort to persuade Prime Minister Andy Burnham not to nationalise the company.
Key facts
- London & Valley Water (L&VW) has offered the government a 'golden share' in Thames Water.
- The share would give the government a veto over big decisions and hostile takeovers.
- L&VW is a consortium of 100 institutional investors holding £17bn of Thames Water's £21bn debt.
- The offer follows Prime Minister Andy Burnham's call for greater public control of the water company.
The group of investors pursuing a rescue bid for Thames Water have offered the government a “golden share” in a last-ditch attempt to convince Prime Minister Andy Burnham not to nationalise Britain’s biggest water company, according to the Guardian.
London & Valley Water (L&VW), a consortium of 100 institutional investors that hold £17bn of the company’s £21bn debt, said it recognised the new prime minister wanted greater public control and to strengthen the accountability of the water company, the Guardian reported.
The proposed golden share would give the government a veto over big decisions and hostile takeovers. The move comes after Burnham’s call for greater public control of the water sector.
The BBC reported that the water supplier’s lenders are trying to prevent the company from being taken over by the Burnham government, framing the offer as an effort to head off nationalisation.
The offer reflects the tension between the consortium’s rescue plans and the government’s stated ambition to bring stronger public oversight to the company. By granting a golden share, the investors appear to be seeking a compromise that keeps the company in private hands while addressing calls for greater accountability.
Why it matters
Thames Water is Britain's biggest water company, serving millions of customers, and its future ownership carries significant implications for both consumers and public finances. The clash between private investors and a government weighing nationalisation could shape how the wider water sector is run and held to account.
Frequently asked questions
What is a golden share?
According to the sources, the golden share offered to the government would give it a veto over big decisions and hostile takeovers at Thames Water.
Who is behind the rescue bid for Thames Water?
London & Valley Water (L&VW), a consortium of 100 institutional investors that hold £17bn of Thames Water's £21bn debt, is pursuing the rescue bid.
Why is the government considering nationalisation?
The investors said they recognised Prime Minister Andy Burnham wanted greater public control and to strengthen the accountability of the water company, which prompted the golden share offer.