Wessex Water chairman Colin Skellett has been cleared after a police probe into claims that he accepted a �1m bribe in return for influencing a takeover bid.

City of London detectives said Mr Skellett had been released from police bail without charge, more than five months after he was arrested in a dawn raid.

I am against people who sue public bodies. The only people who win are lawyers Colin Skellett

"After discussion with the Crown Prosecution Service the Fraud Squad is satisfied that no criminal offences were committed in relation to the payment received by the official," police said on Tuesday.

"Despite the initially suspicious nature of the payment, City of London Police have established that it did not constitute a criminal offence in this or any other country."

Legal comeback?

Mr Skellett said he was "delighted" with the decision.

But he said he was "amazed" that the probe had taken so long, slated officers for "actively" publicising his name at the time of his arrest, and questioned police tactics.

"I fully appreciate that the police have to investigate these matters," Mr Skellett told BBC News Online.

"It was just the way it was done.

"You had 14 police officers raiding my office and home, without any prior investigation. And it was done so publicly."

'Bury the hatchet'

But Mr Skellett said he was unlikely to seek compensation from police over an arrest which had opened a "difficult period" for him and his wife, delayed a Wessex refinancing deal, and prompted his resignation as chairman of rail maintenance firm Jarvis.

It is unfortunate and regrettable, but inevitable that investigations of this nature impact upon the individuals and businesses involved DCI Tony Thomas, City of London police

"I am against people who sue public bodies," he said.

"It's your money, my money. The only people who win are lawyers."

Mr Skellett, who said he would be holding a celebratory party for staff, customers and other "supporters", contested a quote in the Business newspaper in August that he would "most certainly" take advice over damages once cleared of the charges.

International probe

Detective chief inspector Tony Thomas admitted the implications of detectives' "long and demanding investigation", which saw officers speak to financial regulators and international authorities.

"It is unfortunate and regrettable, but inevitable that investigations of this nature impact upon the individuals and businesses involved," Mr Thomas said.

The statement added that it was police duty "to fully investigate any reports made relating to suspected financial irregularities".

'Transparent payment'

The allegations related to the sale of Wessex Water to Malaysian-based YTL for �545m in March last year.

While Mr Skellett admitted to receiving a �1m payment, he maintained this was given for consultancy services.

"That's a completely transparent payment that's gone into my bank for a consultancy agreement," Mr Skellett said in August.

Wessex, which supplies drinking water to about 1.2 million people and sewerage services to 2.5 million people in the south west of England, was formerly owned by disgraced energy firm Enron.

A second man arrested in connection with the investigation has also been released, without charge, from police bail.