Tue, 02 Sep 2025

Tue, 02 Sep 2025 Thames Water bidders ready to clear out top managers

Sources close to the deal accept that the government needs to be seen to be tough with the company.

* Bidders for Thames Water are prepared to fire senior managers as part of their plan to restructure the company
* A new board led by Mike McTighe would oversee the restructuring, with the current CEO Chris Weston facing criticism over his £195k bonus
* A consortium of investors is offering £1bn in extra funding through debt write-offs and fresh capital
* The lenders are proposing a new operational plan with £9bn investment in upgrades over 5 years, but also want a "regulatory reset" with less onerous targets for pollution and leakage
* Government has stepped up preparations for a Special Administration Regime (SAR) as potential bidders express frustration at being locked out of the process
* Consultants Teneo estimate that a SAR could cost the Treasury £4.1bn, but infrastructure expert Prof Dieter Helm argues that Thames Water is a viable asset with reduced debt and could attract bidders in a well-designed sale process
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