The following press release, dated April 16, 1996, was issued in London this morning:
Southern Company has become aware of market rumour and noted todays rise in the price of National Powers shares.
Accordingly, Southern Company has informed National Power of its intention to publish this announcement.
The UK government is expected shortly to decide whether to permit further vertical integration in the UK electricity industry
following the Monopolies and Mergers Commission enquiry into the proposed acquisitions of Midlands Electricity by
PowerGen and Southern Electric [plc] by National Power.
Depending on the decision of the UK government, Southern Company (which already owns SWEB) is considering a
combination of the businesses of Southern Company and National Power (which already owns independent power assets in
North America). Such a transaction would be subject to the applicable requirements of various regulatory bodies, in the UK
and US, including OFFER, OFT and the DTI; the FTC and SEC. Southern Company believes that a transaction is possible
which would benefit both National Power and Southern Company.
Until the UK government has published its decision concerning the MMC recommendation, the terms of a proposal cannot
be finally formulated. A further announcement will be made when appropriate.
Note: This announcement is neither an offer nor the solicitation of an offer with respect to any securities. Insofar as the laws
of the United States of America or any state thereof may be concerned, the sole purpose of this announcement is to
discharge disclosure responsibilities under applicable laws and stock exchange rules. This announcement is not for release,
publication or distribution in or into Canada, Australia or Japan.