A new beginning for American Water
- From: Vol 10, Issue 12 (December 2009)
- Category: General
- Region: Americas
- Country: United States
- Related Companies: (RWE) Rhein Ruhr Partners and American Water
The exit of RWE from American Water’s share structure should finally allow the stock to perform to its full potential. Goodwill from the original acquisition continues to burn a hole in the balance sheet.
When RWE acquired American Water in January 2003, it paid a rich premium of 2.7 times book value to gain entry into the North American regulated water market. Less than three years later, disillusioned with the lack of synergies and the capital-intensive nature of the industry, RWE announced plans to divest the company and concentrate on its European energy ...
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