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THE THAMES WATER PREFERRED BIDDER KKR HAS PULLED OUT OF A RESCUE DEAL AND THE F UTURE OF THE TROUBLED SUPPLIER IS NOW IN DOUBT. 09:41, 03 Jun 2025 16 million households have been warned
after a major update over their water supplier. The Thames Water preferred bidder KKR has pulled out of a rescue deal and the future of the troubled supplier is now in doubt. A US private
equity group says it cannot proceed with acquiring a £4bn stake. The company has “indicated that it will not be in a position to proceed”, Thames Water said. Sir Adrian Montague, the
company’s chair, said: “While today’s news is disappointing, we continue to believe that a sustainable recapitalisation of the company is in the best interests of all stakeholders and
continue to work with our creditors and stakeholders to achieve that goal. READ MORE UK FACES 'SPANISH SCORCHER' HEATWAVE WITH 31C AS EXACT DATE IT STARTS ANNOUNCED “The company
will therefore progress discussions on the senior creditors’ plan with Ofwat and other stakeholders. The board would like to thank the senior creditors for their continuing support.” Article
continues below Thames Water, which serves 16 million customers in London and south-east England, needs to secure fresh funding for its operations by the end of June. Labour Party MP and
Environment Secretary Steve Reed said the Government was “keeping a very close eye” on the Thames Water situation. Mr Reed told LBC Radio that “Thames itself remains stable” but added: “The
Government is clearly keeping a very close eye on what’s going on. “We’re monitoring the situation, but there’s no disruption to water supply. Thames have got a number of options that
they’re exploring.” Article continues below He went on and also said that “as things stand” Thames Water is “a stable, ongoing company” but the Government was “ready for any eventuality”.
“If the circumstances happened with any company, any water company, where there was a breach and it would need to be put into special administration, that would happen but, as things stand,
that’s not applying to any company right now."