United Utilities has confirmed it is to divest its struggling Vertex outsourcing business following a strategic review.
The group announced the decision along with results for the six months to 30th September 2006, which showed pre-tax profits of £282m, a fourteen per cent increase on the same period in the previous year.
Our strategy is to focus on our core skills of managing water, wastewater, electricity and gas networks,'' said chief executive Philip Green. “In line with this strategy, the Board has recently taken the decision to initiate a process for the divestment of Vertex."
United appointed Merrill Lynch to review Vertex in June, after receiving a number of unsolicited approaches. At the time, analysts valued Vertex at around £450m but it is now thought unlikely to fetch over £400m.
There has been speculation over the last few months over possible buyers, with Private equity firm 3i and rival outsourcing firms Liberata, Tata Consulting Services and Quattro BPO Solutions all tipped to be interested.
Vertex accounts for around 5 per cent of United Utilities' total revenues.
