Thames Water lenders offer 'golden share' to head off nationalisation

Thames Water lenders offer 'golden share' to head off nationalisationImage source, Getty ImageImage caption, Thames Water's lenders want to let local authorities have more involvementBySimon Jack, Business editor and Emer Moreau, Business reporterPublished1 minute agoThames Water's main lenders are offering the government a "golden share" and more control for local authorities in a bid to stop the troubled supplier from being nationalised.The government recently rejected a previous rescue proposal, and the BBC understands the lenders are preparing a legal challenge in case the new Andy Burnham-led government takes the firm into public hands.In his first speech as prime minister on Monday, Burnham said he wanted to see greater public control of "life's essentials".The new proposal offers local authorities greater involvement in the firm, similar to the relationship between United Utilities and Greater Manchester agreed when Burnham was the city's mayor.The London & Valley Water (L&VW ) consortium of lenders had already proposed a £10bn deal to prevent Thames Water from entering administration. It would involve writing off nearly half of its debt and injecting new cash in return for leniency on future pollution fines. The deal was rejected by the government in June, with then-environment secretary Emma Reynolds saying it did not do enough for consumers or the environment.Sources close to the new deal said the creditors had sweetened it with hundreds of millions in new money on top of the existing offer. A golden share would give the government veto power over decisions.The government has been contacted for comment.L&VW said on Tuesday that the new offer had "material improvements" on the old one, and would benefit customers.A spokesperson said: "We continue to believe that the L&VW plan is by far the fastest and most reliable route to solving Thames Water's complex problems and impro...