Widespead media reports this morning, based on an article in the Financial Times, are suggesting that a £5 billion bid for Thames Water could see billions of pounds worth of the company’s existing assets sold off.

According to the FT, London-based investors Covalis Capital has tendered a £5 billion bid for the struggling water company with £1 billion to be provided upfront and a further £4 billion to be raised from the asset sale, together with refinancing and a stock market listing at some point in the next 3 years.

Suez Group has been brought in to act as the operating partner with Covalis – however, the French-owned company would not own any shares in Thames Water, according to the FT.

The leading financial publication is also reporting that the UK government would hold a”golden share” with a seat on the board and other rights.

Reuters are separately reporting that Suez had confirmed the bid in an emailed statement today to Reuters, saying:

"At this stage, Suez's scope of work is limited to an advisory mission to ensure the project's success and address the specific challenges faced by Thames Water."

To date Thames Water has made no official comment.