Terra Firma is likely to sell East Surrey Holdings' water business after it acquires the UK utility group. The UK-based private equity group, has already seen six bids of approximately £190m for the water operations. The water businesses include the Sutton and East Surrey water company and ES Pipelines, a gas connections operation. Terra Firma is thought to have shortlisted financial buyers and industry players to buy the water business. The Takeover Panel has ruled that Terra Firma must proceed with its takeover bid for East Surrey which will probably lead to a break-up of the company. Citigroup, which is advising Terra Firma, and Barclays Capital, will arrange debt financing for the proposed £453m takeover of East Surrey.