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German WestLB ups bid but AWG remains resistant

The private equity unit of German bank WestLB has increased its offer for UK water group AWG. The utilities company rebuffed an initial offer from WestLB in February but has now been asked to consider an increased bid.

AWG rejected a 510 pence per share first approach made by WestLB's bidding company, Bream Investments, which valued the company at £900m. West LB's second approach of between 520 pence and 545 pence is an all cash offer and values AWG at up to £961m.

AWG remains resistant to the proposal and is thought to be holding out for an offer in the region of 600 pence per share. ‘AWG believes that the upper end of their latest proposal also remains well short of an acceptable price,' the utility company said in a statement.

If AWG were to accept the revised offer it would be the second largest transaction carried out by the German bank since it agreed to allocate £3bn to European buy-out investment opportunities in February. Last month the unit participated in a syndicate that bought UK cinema chain Odeon from Cinven in a transaction worth £430.6m.

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