Dallas - Two of the industry's best known firms, Western Waste Industries (WW), Torrence, Calif., and Dallas-based USA Waste, have jointly revealed a merger, approved by both companies Board of Directors.
Western Waste stockholders will receive 1.5 shares of USA Waste common stock for each WW's common share.
From a financial perspective, the exchange ratio has been judged to be fair by both companies' independent financial advisors.
The closing of the merger is subject to approval by both companies' stockholders and lenders; Hart-Scott-Rodino anti-trust clearance; and opinions that the merger will qualify as a tax-free pooling of intrest transaction.
USA Waste has received an irrevocable proxy from Kosti Shirvanian, Western Waste's chairman, CEO and largest stockholder, to vote his shares in favor of the merger. These shares represent approximately 31 percent of WW's shares outstanding.
Currently, USA Waste owns approximately 4.5 percent of Western Waste's outstanding shares, which will be cancelled when the merger becomes effective.