Saturday, July 19, 2008

Republic rejects Waste Management's unsolicited bid

The trash talking has begun which could reduce the number of haulers in the metro area.

Hauler Republic Services Inc. has rejected an unsolicited $6.19 billion cash offer from larger rival Waste Management Inc.

Republic, the nation's third-largest waste collector, instead wants to stick with its own deal announced last month to buy No. 2 Allied Waste Industries Inc., which serves some municipalities in the St. Louis metro area. The all-stock agreement was worth about $6.07 billion at the time.

The investment office that manages the assets of the Bill & Melinda Gates Foundation Trust disagreed with the deal. BGI owns 15.6 percent of Republic and 2.3 percent of Waste Management. That office also thinks the deal undervalues the target company, lacks strategic rationale and believes the regulatory process will be arduous and risky.

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