KKR & Co. withdrew its bid to invest £4 billion ($5.4 billion) in Thames Water when the US infrastructure giant realized there was little upside to a deal, according to people familiar with the deliberations.

The water company said the decision not to proceed with the equity raise created uncertainty around its plan to stay afloat, raising the prospect of nationalization.

Thames Water rescue takeover collapses after private equity firm KKR drops out - The troubled utility is taking forward talks with ‘certain senior creditors’ on an alternative plan to recapitalise the business.