Thames Water CEO Steers Away From Break Up After Covalis Bid

The chief executive of Thames Water warned breaking up the utility would be a distraction from dealing with its bigger problems of fixing chronic leaks and sewage spills.

The heavily-indebted utility last week received a bid from Covalis Capital that hinges on a plan to raise money by selling off some Thames assets before floating the remaining company on the stock market.

Breaking up the company was one rescue option outlined by regulator Ofwat in July as a way to avoid Thames being temporarily nationalized.

Thames is in crisis and is battling to avoid being plunged into special administration. The ...