Southern Co. Buys German Utility

Fortnightly Magazine - July 1 1997
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Moody's on May 14 said it would maintain a negative outlook on The Southern Company's Prime-1 short-term rating for commercial paper following The Southern Company's announcement that it will acquire a 25-percent ownership interest in Berliner Kraft und Licht AG (Bewag), an electric distribution company in Berlin.

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Southern will purchase a 25-percent share for $830 million, pending approval by Berlin's parliament and European regulators. A recently established consortium, consisting of Southern Co. and two German utilities (PreussenElektra and Bayernwerk) will control 75 percent of Bewag.


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