KKR deserted Thames Water rescue regardless of No 10 talks with Kravis

The funding big lined as much as rescue Thames Water deserted its supply days after talks befell involving one in every of its co-founders and Downing Avenue officers.

Sky Information has learnt that Henry Kravis, one of many architects of KKR’s ascent to turning into one of many world’s strongest buyers, mentioned its plan to bail out Britain’s largest water firm with Varun Chandra, Sir Keir Starmer’s prime enterprise adviser, over the weekend.

Sources near the now-abandoned deal stated the decision between the pair had been organised following a request from Thames Water and its advisers at Rothschild.

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One supply near KKR stated, nonetheless, that its senior New York-based executives had been unable to get snug with the extent of operational and monetary danger connected to investing as a lot as £4bn of fairness into Thames Water.

They had been additionally involved about unfavourable rhetoric directed at Thames Water and the remainder of the trade in current weeks by Steve Reed, the surroundings secretary, and different ministers, the supply added.

KKR’s determination to drag out of the discussions leaves the water firm, which serves greater than 15m clients throughout London and the Thames Valley, counting on an alternate deal being assembled by its largest bondholders.

That proposal is being progressed, Thames Water stated on Tuesday, though the spectre of non permanent nationalisation continues to loom over it.

The corporate was fined a report £123m by Ofwat, the trade regulator, final week, and faces additional substantial penalties within the coming months.

KKR has been contacted for remark.