American Water Works to be spun off in IPO

0 Comments | Philadelphia Inquirer, The, March, 2006 | by Akweli Parker

Voorhees-based American Water Works Co. Inc. will be spun off in an initial public offering, its owner, RWE AG, said today.

RWE, of Germany, said in November it would divest American Water either through an IPO or by selling to an investors' group. RWE is also looking to sell its United Kingdom water business, Thames Water, so that RWE can focus on European energy markets.

Today, RWE said the sales process would begin "shortly," after filings were made with state public utility commissions in the United States and the U.S. Securities and Exchange Commission. RWE said it wants to complete the sale in 2007.

RWE purchased American Water Works in 2003 for $8.6 billion. American Water has annual sales of about $2.1 billion and operates in 29 states and 3 Canadian...