The best way to save Thames Water? List it on the stock market | Nils Pratley

Listing would allow the market to be admirably brutal - inflicting pain on the owners and forcing management changesHenley regatta complains of sewage pollution from Thames WaterWater firms discharged raw sewage 300,000 times last year, court hearsAs we wait for Thames Water's crew of international investors to decide if they want to inject more capital into their ailing and over-borrowed asset, it is hard to escape the thought that a recapitalisation - if it's doable - would have happened by now if only the company were listed on the stock market. In essence, what's needed at Thames, if the owners wish to save it, is a large rights issue or debt-for-equity swap. The stock market tends to be good at such exercises. It cuts to the chase.Recall the crisis in the outsourcing sector a decade ago, which has parallels with water in terms of scandal (with overcharging, rather than the sewage) and loss of confidence on the part of government and the outside world. The stock market was admirably brutal with companies such as Serco: it whacked the share price down 90%, thereby inflicting necessary pain on owners; it forced management change; then it became possible to raise funds. Continue reading...