Thames Water creditors seek talks with Burnham as nationalisation looms

Consortium preparing for potential legal battle amid reports new PM could put the company into temporary public ownership

The group of investors pursuing a rescue bid for Thames Water have said they are willing to discuss greater public control but are also preparing for a potential multi-billion pound legal battle amid reports that Andy Burnham could temporarily nationalise the company.

London & Valley Water (L&VW), a consortium of 100 institutional investors that hold 17bn of the company's 21bn debt, has said it is open to government involvement with Thames Water, but indicated that this does not include public ownership in the struggling company.