The board of directors of waste handling firm Republic Services declared that a July 14 buyout proposal from Waste Management Inc. is not more favorable to Republic stockholders than the definitive merger agreement in place between Republic and Allied Waste Industries. In addition, the board concluded that the WM proposal could not reasonably be expected to lead to a transaction that is more favorable than the deal between Republic and Allied.
The Republic board concluded that a merger with WM, which is the waste handling industry’s dominant firm, would encounter greater objections from federal and state regulators than the pending transaction with Allied because there is more overlap between WM and Republic’s operations than between Allied’s and Republic’s operations.
