Investors on hold at Pennon

SHAREHOLDERS in Pennon expecting news of a payout from the financial restructuring of the South West Water group will have to wait longer as the company, advised by CSFB, said it has nothing to tell investors.

Pennon has been trying to find ways of restructuring itself to raise money for at least two years but the recent moves announced by Scottish Power's Southern Water and Anglian Water had increased holders' hopes.

Instead they were told only of plans to sell its small Viridian Instrumentation business as the company reported a 4% increase in the interim dividend to 12.1p. In the six months to the end of September its pre-tax profits fell 3% to £40m as the costs of investing in infrastructure grew.

Finance director Ken Hill said Pennon was examining a plan similar to that announced by AWG and Southern Water.