Date: October 2, 2008
Source: Merge with Republic Above
Waste Management which has proposed to buy rival Republic Services for $6.73 billion now says "that the current credit market environment made acquisition debt more expensive and a transaction less attractive to Waste." These were the words of Waste management CEO David Steiner in a telephone call to Republic CEO James O'Connor as reported in a recently filed S4 with the Securities and Exchange Commission. Steiner went on to say that Waste Management "continued to be interested in acquiring Republic" and "would continue to monitor the credit market and other conditions impacting a possible acquisition of Republic." He said "Waste would continue to pursue clearance of its antitrust filing with the Department of Justice." He also "expressed an interest in buying any assets that would be divested as a result of a Republic-Allied combination, if the Republic-Allied merger went forward." Most industry analysts including Leone Young of Citigroup, Brian Butler of Friedman, Billings, Ramsey and David Feinberg of Goldman Sachs say that a Republic-Allied deal now appears more likely than a Waste Management-Republic combination.
Below is an excerpt from that filing:
Form S-4/A
REPUBLIC SERVICES INC - RSG
Filed: October 02, 2008 (period: )
Pre-effective amendment to an S-4 filing
"On September 16, 2008, Mr. Steiner made an unsolicited call to Mr. O'Connor in which he indicated that Waste was still interested in acquiring Republic, that the Waste board of directors would meet the following week and that Mr. Steiner would be contacting Republic again in about a week. On September 25, 2008, Mr. Steiner again called Mr. O'Connor. In that call, Mr. Steiner said that Waste continued to be interested in acquiring Republic, and while he thought financing was available he acknowledged that the current credit market environment made acquisition debt more expensive and a transaction less attractive to Waste. Mr. Steiner indicated that Waste would continue to monitor the credit market and other conditions impacting a possible acquisition of Republic, and may further communicate with Republic as Waste continues to evaluate its options in advance of Republic's expected mid-November stockholder meeting. Mr. Steiner stated that Waste would continue to pursue clearance of its antitrust filing with the Department of Justice. Mr. Steiner also expressed an interest in buying any assets that would be divested as a result of a Republic-Allied combination, if the Republic-Allied merger went forward."
A complete copy is available along with other documents on Republic's website: www.republicservices.com.
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