Food & Water Watch: RWE Delays Controversial Sale of American Water on Wall Street
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FOR IMMEDIATE RELEASE
NOVEMBER 15, 2007
1:20 PM
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CONTACT: Food & Water Watch
Erin Greenfield (202) 797-6533, egreenfield@fwwatch.org or
Victoria
Kaplan (202) 797-6556, vkaplan@fwwatch.org
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RWE Delays Controversial Sale of American Water on Wall Street
Statement of Food & Water Watch Executive Director Wenonah Hauter
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NEW YORK - November 15 - "Amid third quarter profit losses, Germany-based utility giant RWE
announced it would delay its controversial sale of American Water, citing
"unfavorable" market conditions in the United States. This decision begs the
question: will market conditions ever be favorable to the privatization of
public water services?
"RWE Supervisory Board minutes obtained by Food & Water Watch indicate that
the economic, infrastructure, and political conditions in the United States
made profitability difficult, spurring RWE to unload its poor investment on
Wall Street. RWE's short history in the U.S. water business is yet another
black mark in the long line of water privatization failures including
Stockton, California, Atlanta, and New Orleans.
"American Water's prospectus also indicates difficult conditions for
profiting from water. The S-1 indicates the likelihood that some
communities, such as Felton, California, which currently receives water from
American Water, will use the power of eminent domain to purchase their water
system and restore local, public control. Every potential investor should be
aware of this risk, as well as the other large and unknown risks associated
with the capital-intensive water industry.
"Water is a public trust and a public responsibility. The future of American
water lies not in further privatization but in a renewed commitment to safe
and affordable public water."
Food & Water Watch is a nonprofit consumer rights organization that
challenges the corporate control and abuse of our food and water resources.
For more information, please visit www.foodandwaterwatch.org.
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