Tuesday, 17 January 2017

AMs and MPs call for Severn Trent to withdraw takeover bid

A group of Welsh AMs and MPs have written to Liv Garfield, CEO of Severn Trent, urging her to withdraw the company's takeover bid after shareholders failed to back the plan by the numbers required.

A press statement issued by Plaid Cymru's Llyr Gruffydd AM together with Labour MPs Ian Lucas, Jo Stevens and Susan Elan Jones as well as Ken Skates AM calls on Severn Trent to respect the views of the local community.

The statement goes on to read:

"The EGM to determine the fate of Dee Valley Water took place on 12 January 2017 and the results published on the Stock Exchange show that the takeover by Severn Trent will only succeed if the High Court strips the voting right from a selection of shareholders.
"These shareholders referred to as the transfers cover staff of Dee Valley Water, local customers and the community and they overwhelmingly rejected the Severn Trent offer due to loss of jobs in the area, the deterioration in service they would receive from Severn Trent and the concern about water bill increases.
"The High Court will decide on 25 January 2017 if the group’s votes will be counted, the potential that they might not represents a real threat to social justice. Due to the monopoly nature of the water industry customers have no way to choose their supplier. The transfer votes have tried to exercise their democratic voting rights by becoming shareholders to have their say on who their supplier should be, this must be taken into account.
"A group of Welsh Assembly members and Members of Parliament have written to Liv Garfield, CEO of Severn Trent asking that she respect the views of the local community and withdraw her offer."


No comments: