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Thames Water: Breakup Reports

UTILITIES

Further signs that the company is heading towards a SAR scenario, with potential haircuts for opco debt no longer a tail risk.

• The Thames Water story continues to develop following the default notice on Kemble debt Friday.

• Telegraph reports management are exploring a breakup into 2 operating entities; London and Thames Valley / Home Counties.

• The move would potentially make it easier to sell operations.

• High cash price THAMES 4.375 31 are another ~40 wider today, ~115 wider over the past week and a half.

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