Pennon Group PLC (LON:PNN) shares rose on Monday morning as the water company is reportedly preparing to sell its Viridor waste management arm.
US private equity firm KKR made a £4bn bid a year ago to no avail, but bankers have now been appointed to manage the sale.
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An auction will be formally launched soon, the Sunday Telegraph reported, as so far there has only been informal communication from interested parties.
Pennon shares were up 8% to 1,087p in mid-morning.