American bank Citigroup has announced its intention to sell its £2 billion stake in Kelda Water, the parent company of Yorkshire Water.

Citigroup, one of Yorkshire Water’s biggest shareholders, has appointed investment bank Evercore to find a buyer for its 30 per cent stake.

Commenting on the announcement in a statement released yesterday, Yorkshire Water said:

“We are aware of Citi’s decision to review its investment in Kelda. It is not unusual for companies to trade their investments.”

A report in yesterday’s Sunday Times newspaper said that a sale could trigger a battle for control of the water group as two of the other three stakeholders, Deutsche Bank and pension fund giant M&G, are also reportedly looking to sell their 23 and 10 per cent stakes respectively.

Last month's credit ratings downgrade of Yorkshire Water by ratings agency Moody’s was attributed to the impact of low interest rates and concerns over its debt hedging strategy.