Waste Management to seek Republic stake

Waste Management said it will seek to buy shares of Republic Services, less than a week after the Fort Lauderdale-based solid waste management firmrejectedits $34-a-share buyout offer.

Last Friday, Republic (NYSE: RSG) said its planned merger with Phoenix-based Allied Waste Industries trumped Waste Management's offer. It repeated its stance in a news release on Thursday.

"Republic continues to believe that the merger between Republic and Allied will create significant value generating opportunities, including significant cost saving synergies, and is in the best interests of Republic stockholders," the company said. "Republic notes that Waste can only acquire up to $63.1 million worth of Republic common stock without first receiving antitrust clearance from the federal government.

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"While Republic is aware of our fiduciary duties and will respond to Waste's antitrust notices as appropriate, Republic will continue to guard against opportunistic attempts to disrupt our strategic plans through open market activity or otherwise."

The announcement by Waste Management brings about an antitrust review by the U.S. Department of Justice.

Republic and Allies continue to work toward a merger, which would move one of South Florida's largest public companies to Arizona. The companies announced Wednesday that officials will lead what it calls an integration planning process, and that they have retained Deloitte Consulting LLP to advise on merger integration planning.

The integration team is led by Michael Cordesman, Republic's president and chief operating officer, and Christopher Melocik, Allied's senior vice president of operations effectiveness.

With $6.1 billion in revenue, Allied (NYSE: AW) is the second-largest solid waste services company, behind industry leader Waste Management (NYSE: WMI). Republic, with $3.2 billion in revenue, ranks third.

South Florida entrepreneur H. Wayne Huizenga is a common thread between Waste Management and Republic. Waste Management was formed in the 1960s when he merged his South Florida garbage-hauling firm with his family's in Chicago. Huizenga also founded Republic, though he has since left both companies to focus on other ventures -- including the Miami Dolphins, of which he is co-owner.

Republic shares closed up 31 cents to $32.98. The 52-week high was $35 on Nov. 8. The 52-week low was $27.29 on July 10.