Waste Management, Inc. (NYSE:WMI) is switching around the merger game in the garbage and trash collection sector. The company has announced today that it has made a proposal to Republic Services, Inc.(NYSE: RSG) to acquire Republic for $34.00 per common share in cash.
The company said that its proposal represents a premium of approximately 22% over the closing price of Republic stock from before the offer was submitted. Waste management believes that its all-cash proposal offers a better value to Republic stockholders than the recently announced Republic-Allied Waste Industries, Inc. (NYSE: AW) transaction.
The company said its board is committed to maintaining an investment grade status and is committed to continuing its annual dividend of $1.08 per share.
Waste Management noted that the Republic-Allied merger agreement expressly contemplates alternative proposals from third parties and defines a process for Republic to respond to those proposals.
The company believes that a transaction with Republic would close early in 2009. Waste Management also noted that it believes all of the financing needed to complete the transaction will be available on satisfactory terms believes it will maintain its investment grade status on a combined basis.
You could imagine that this would definitely run into antitrust issues and would definitely require certain divestitures.
Garbage Wars: Waste Management vs. Republic vs. Allied
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