Waste Management Bids For Republic Services
The $34 per share offer may scuttle Republic’s existing offer to acquire Allied Waste.
July 14, 2008
Waste Management, a Houston, Texas-based waste disposal company, has made an offer to acquire Republic Services, based in Fort Lauderdale, Florida for $34 per share in an all-cash transaction. The offer is about 22% over Republic’s closing price on Friday, the last day of trading before offer abbouncement.
In proposing this bid to Republic, Waste Management must convince the Republic board that this deal will benefit the company to a greater extent than the Houston company’s own bid to acquire Allied Waste Industries. In June, Republic offered $6.07 billion to acquire Allied Waste in a stock transaction.
Waste Management chief executive officer David P. Steiner, said, “Our $34.00 per share all-cash proposal clearly offers a better and more certain value alternative to Republic stockholders than the recently announced Republic-Allied Waste Industries, Inc. transaction. We believe our proposal is a superior proposal.”
Credit Suisse is acting as Waste Management’s financial advisor in this transaction, while Skadden Arps and K&L Gates will act as legal counsel to Waste Management in the transaction.
Waste Management announced today the company’s preliminary second quarter 2008 earnings of $3.49 billion, a 3.9% increase from the second quarter of 2007. Company shares fell from $36.61 on Friday, to $34.30 as of press time on Monday.
Republic shares increased from $27.90 to $31.25 as of press time on Monday.
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