21st Dec 2016 16:35
LONDON (Alliance News) - The boards of Dee Valley Group PLC and Severn Trent PLC on Wednesday said that initial meetings between Severn Trent representatives and Dee Valley Water employee representatives have taken place.
These meetings took place on November 21, and further meetings have taken place between the parties December 13 and this week.
Severn Trent is currently attempting to buy Dee Valley with a recommended offer of 1,825.00 pence per ordinary Dee Valley share and a comparable cash price of 1,713.00p for each non-voting share.
Although this bid has received support from Dee Valley's board, Dee Valley employees submitted evidence to the UK's Competition & Markets Authority.
Dee Valley's Employee Forum has said "only four employees" supported the offer made by Severn Trent. The Forum said Severn Trent poses a threat to the employment of staff at the Wrexham and Chester sites while other concerns relating to the level of customer service and the effect on the local economy "have not been addressed in this opinion".
On Wednesday, however, Dee Valley urged shareholders to take no action on the rival offer made by investment company Ancala Fornia Ltd and said investors should not sell their shares to Ancala.
Shares in Dee Valley were down 0.4% at 1,797.10 pence Wednesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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