SCHRODER SALOMON SMITH BARNEY

	British Energy - CEO, Peter Hollins resigned with immediate effect
yesterday. The company has stated that the resignation does not indicate any
deterioration in the outlook for the business performance, but rather
reflects a desire in the Board for a change in leadership. Nevertheless,
once again British Energy has managed to produce a unpleasant surprise for
investors, and there will be doubts over future strategy until such time as
there is clarity over the management succession. Therefore we retain our 4H
Recommendation (Under perform High Risk) and 265p price target (current
price 279p).

	Seven Trent - attached is our note reviewing the preliminary results
of Severn Trent (SVT.L). We retain our 3L (Neutral Low Risk) Recommendation,
with a 730p price target (current price 720p).

	Kelda - attached is our note reviewing the preliminary results of
Kelda (KEL.L). We retain our 3L (Neutral Low Risk) Recommendation, with a
395p price target (current price 384p).

	 <<SVT post prelims 7Jun01.pdf>>  <<Kelda post interims 7Jun01.pdf>>



Peter Bisztyga
Associate
European Utilities Equity Research
Schroder Salomon Smith Barney
Tel: +44 20 7986 3932
Fax: +44 20 7986 ----
E-mail: peter.bisztyga@ssmb.com


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 - SVT post prelims 7Jun01.pdf 
 - Kelda post interims 7Jun01.pdf