QUESTIONS were raised last night about the impact on North East jobs, services and the community after Northumbrian Water agreed to a £2.4bn takeover bid from Hong Kong.

Durham MP Roberta Blackman-Woods voiced her worries after yesterday’s announcement that Northumbrian, which is headquartered in her constituency, is recommending the 465p a share cash offer from Cheung Kong Infrastructure Holdings Limited (CKI).

CKI, owned by Hong Kong billionaire and Asia’s richest man Li Ka-shing, has created a new company called UK Water to take over Northumbrian.

And it has sold off Cambridge Water to HSBC to avoid any competition issues.

Northumbrian, which also owns Essex & Suffolk Water, serves 2.6 million people in the North East and 1.8 million in the South East.

CKI needs approval from 75% of Northumbrian’s shareholders and crucially, it has secured support from the utility’s biggest shareholder, the Ontario Teachers Pension Plan Board.

The Canadian group, which owns almost 27% of Northumbrian, was itself linked to a possible bid last year but has given undertakings that it will not mount or support a rival approach.

Northumbrian will contact all of its shareholders before the end of the month and the deal is likely to be rubber-stamped by October.

Northumbrian chairman, Sir Derek Wanless, said: “The offer represents an attractive premium to both the regulated capital value of Northumbrian Water Limited and the company’s share price before recent speculation began.

“The directors believe that, whilst Northumbrian would have a strong future as an independent company, the consortium’s offer to Northumbrian shareholders fairly values the current and future prospects of the company.”

CKI also appeared to confirm that there would be few obvious changes at the Pity Me-headquartered utility.

CKI managing director and UK Water director, HL Kam, said: “We attach great importance to the skills and experience of the existing management and employees of Northumbrian and believe they will be an important factor in the continuing success of the group. Through our experience with CKI’s other businesses in the UK we appreciate the critical importance of Northumbrian’s business to the communities it serves.”

But Dr Blackman-Woods said she would be seeking an urgent meeting with CKI to discuss the issues raised and the potential effects on the community and the company’s 1,648 staff.

“Northumbrian Water is a successful, locally-based company with a strong community focus,” she said. “I believe it is very important these community links are maintained regardless of any changes in management.

“Northumbrian Water is also the largest private sector employer in my constituency, providing hundreds of jobs as well as offering key skills and training for the local community.

“My concern is that as a result of this takeover, we may have a management who will not understand the importance of those private-sector jobs in Durham.”

But Angelos Anastasiou, an analyst with Investec Securities, said: “I believe the management team will be sticking on to run the business. I don’t think there will be any noticeable change in the company or for customers.”