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July 18, 2008 - 6:15PM
Republic Services rejects Waste Management’s bid
Edward Gately, Tribune
The nation’s largest waste hauler suffered a setback Friday when a competitor rejected its buyout offer.
This week, Waste Management Inc. made an unsolicited offer to buy Republic Services for $6.19 billion in cash.
Republic Services, the third-largest hauler, earlier announced it is purchasing Scottsdale-based Allied Waste Industries in a $6.07 billion stock deal expected to close by the fourth quarter.
Waste Management offers Republic Services $6.19 billion
Waste Management hoped to derail the Allied Waste-Republic Services pairing with its offer.
But Republic Services’ board said Friday it rejected Waste Management’s all-cash offer of $34 per share.
Waste Management issued a statement, saying it is disappointed in the board’s “unwillingness to consider Waste Management’s proposal as one that could reasonably be expected to lead to a superior proposal.”
“It’s fair to say at this point that we’re evaluating our options,” said Lynn Brown, Waste Management’s corporate spokeswoman.
By rejecting Waste Management’s offer, Republic Services reaffirmed its commitment to its pending merger with Allied Waste, according to a statement released by Allied Waste.
“Allied and Republic share a common vision and our combined resources will create a formidable competitor to Waste Management in the waste and environmental services industry,” said James Zeumer, Allied Waste spokesman.
A Waste Management-Republic Services combination would encounter more objections from federal and state regulators than the Allied Waste-Republic Services pairing because of significant overlap between the two companies, Zeumer said.
“There could be no assurance of an acceptable outcome by ... the date Waste Management claimed their proposed transaction would close, if at all,” Zeumer said.
Allied Waste’s corporate headquarters is near Loop 101 and Scottsdale Road, and the combined company’s headquarters would remain there.
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