Allied Waste CFO says deal with Republic on track
By
Associated Press
September 16, 2008
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The chief financial officer of Allied Waste Industries Inc. said Tuesday the trash hauler's merger with rival Republic Services Inc. is on track.
Seventeen teams of representatives of the two companies are working on the deal, Peter Hathaway, CFO of Allied Waste, said at a Bank of America conference in San Francisco.
He did not mention efforts by industry leader Waste Management Inc. to buy No. 3 Republic, which agreed in June to buy No. 2 Allied for $6.07 billion in stock.
Waste Management offered $6.73 billion for Republic in what analysts say is an attempt to derail the Republic-Allied deal.
Allied Waste has met with the U.S. Department of Justice to discuss potential divestitures, which would be in trucking routes, landfills and some markets, Hathaway said.
Combined, Waste Management-Republic would be a nearly $16.5 billion-a-year enterprise, dwarfing No. 2 Allied Waste Industries Inc., which reported revenue last year of about $6.1 billion.
An Allied-Republic combination would establish a company with annual revenue of $9 billion, close on the heels of Waste Management, with revenue of $13 billion last year.
The Republic-Allied deal is still expected to close in the fourth quarter, Hathaway said.
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