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Article: Citigroup warns cash may dry up at United Utilities [Edition 2]
- Article from:
- The Evening Standard (London, England)
- Article date:
- July 28, 2009
- Author:
CopyrightCopyright 2009 Evening Standard - London. Provided by ProQuest LLC. (Hide copyright information)
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FALLING water bills might be good news for householders, but they
may turn out to be extremely expensive for some stock-market
investors.
Citigroup today warns that shareholders of United Utilities (UU),
down 1/4p at 465p, which covers Wales, Scotland and northern parts
of England, could suffer a dividend cut or may even have to dig deep
into their pockets to stump up extra cash for the business.
It says industry regulator Ofwat's draft proposals published last
week will put UK water companies under strain if implemented
unchanged, leaving little on the table for investors.
"We believe the proposals are tight but manageable for Pennon and
Severn Trent, but United Utilities may have to raise ...