{"id":703167,"date":"2026-07-21T10:15:10","date_gmt":"2026-07-21T10:15:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/703167\/"},"modified":"2026-07-21T10:15:10","modified_gmt":"2026-07-21T10:15:10","slug":"thames-water-investors-offer-golden-share-in-bid-to-head-off-nationalisation-thames-water","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/703167\/","title":{"rendered":"Thames Water investors offer \u2018golden share\u2019 in bid to head off nationalisation | Thames Water"},"content":{"rendered":"

The group of investors pursuing a rescue bid for Thames Water<\/a> have offered the government a \u201cgolden share\u201d in a last-ditch attempt to convince Andy Burnham not to nationalise Britain\u2019s biggest water company.<\/p>\n

London & Valley Water (L&VW), a consortium of 100 institutional investors that hold \u00a317bn of the company\u2019s \u00a321bn debt, said it recognised the new prime minister wanted greater public control and to strengthen the accountability of the water company.<\/p>\n

The creditors said on Tuesday they were working on a revised rescue package for Thames, including the \u201cgolden share\u201d, which would give the government a veto over important decisions and hostile takeovers.<\/p>\n

\u201cL&VW agrees that there is an opportunity to enhance the way local government, regulators and Thames Water work together, granting greater public controls on critical business issues to improve delivery of complex, essential infrastructure projects, and demonstrate shared accountability,\u201d the company said. \u201cThe consortium is willing to make significant new commitments to grant greater controls and oversight to ministers, implemented through a \u2018golden share\u2019.\u201d<\/p>\n

L&VW\u2019s proposed \u00a310bn rescue deal includes a commitment that investors will not take a dividend for 10 years, or until Thames Water becomes a publicly listed company, and a pledge to expand the water company\u2019s social tariff to reduce bills for struggling households.<\/p>\n

The offer of an improved deal follows reports that Burnham is planning to put the company into a special administration regime, a form of temporary public ownership.<\/p>\n

Burnham said last month there should be \u201cgreater public control\u201d<\/a> of Thames Water and told the Guardian this could mean nationalisation.<\/p>\n

The SAR proposal would transfer the costs of running the company to the taxpayer, with Thames Water\u2019s creditors claiming the bill could come to \u00a32bn.<\/p>\n

\u201cUnder our plan, customers will have strong protections, regulators and government will have enhanced oversight, and there will be greater controls to ensure Thames Water delivers the record investment needed to improve environmental and operational performance,\u201d said a spokesperson for L&VW. \u201cThe consortium is eager to engage with new ministers to discuss their priorities and present a revised proposal.\u201d<\/p>\n

Earlier this month, Thames Water\u2019s creditors were said to be still willing to pursue their bid for the debt-laden company, even if Burnham were to bring it into temporary nationalisation<\/a>.<\/p>\n

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The future of Thames, which serves 16 million customers in London and the Thames Valley and is buckling under interest payments on debt it has run up since privatisation, will be one of the most pressing issues in Burnham\u2019s in-tray.<\/p>\n

The lenders have been trying to take ownership and bring it out of administration after a failed attempt to sell the utility to the US investment group KKR<\/a> last year.<\/p>\n

However, the creditors\u2019 plans were thrown into doubt last month when Emma Reynolds, the then environment secretary, wrote to the regulator, Ofwat, voicing concerns about the terms of the deal<\/a>. On Monday, Reynolds was replaced<\/a> by Angela Eagle as part of Burnham\u2019s new cabinet appointments.<\/p>\n

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