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July 24, 2008
Houston-based Waste Management is not taking no for an answer.
Nearly one week after Fort Lauderdale, Fla.-based Republic Services rejected its unsolicited buy-out offer, Waste Management has filed paperwork informing the federal government of its intention to purchase Republic shares. The filing, made under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, should also prompt an antitrust review of a Waste Management-Republic merger by the U.S. Department of Justice. Will Flower, vice president of communications for Republic, says there is no timetable on the review.
Last week, Republic rejected an all-cash, buy-out offer from Waste Management of $34 per share. The overall proposed purchase price has been estimated at approximately $6.3 billion.
Flower has reinforced Republic’s pending acquisition of Phoenix-based Allied Waste and says the filing does not cause Republic to take any action. “We continue to believe that the merger between Republic and Allied will create significant value including significant cost saving, which is in the best interest of Republic shareholders,” he says.
The filing also comes on the heels of an announcement by Republic and Allied that Michael Cordesman, president and chief operating officer for Republic, and Christopher Melocik, senior vice president of operations effectiveness for Allied, will lead a 10-person integration team that “will select the people, systems and business processes from both organizations to fully capture the $150 million of announced net annual operating synergies as well as ensure that the company is in the strongest position for ongoing success.”
The companies have retained New York-based Deloitte Consulting to advise them during the process.
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