Water takes the path of least resistance, and so – on this occasion as least – does private equity. Apparently deterred by the increasingly hostile political and regulatory environment KKR, the US giant which secured ‘preferred bidder status’ for a takeover of Thames Water, pulled the plug on its £4bn investment over the weekend.

They put in a courtesy call to Downing Street to give them a heads up, then the rest of us found out first thing yesterday morning when Thames updated the City with the........

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