The firm said it had selected KKR as a preferred partner following a "detailed assessment of proposals received".

Thames Water named U.S. investment firm KKR as the frontrunner to invest new equity into Britain's biggest water supplier and help it avoid a state rescue.

Thames Water has picked US private equity giant KKR as its "preferred partner" to buy the troubled water utility firm. The planned investment by KKR would help it deal with its mountain of debt, and Thames is aiming for the transaction to be completed in the second half of this year.