Waste Management believes its bid for Republic Services is superior to Allied Waste's offer

By Lisa Kerner

Charlotte, N.C., Aug. 15 - Waste Management, Inc. said it was disappointed that Republic Services, Inc.'s board of directors rejected its latest proposal to acquire Republic Services for $37.00 per share in cash.

Republic Services announced late Thursday that its board believes that Waste Management's revised Aug. 11 proposal could not reasonably be expected to lead to a transaction that is more favorable than Republic Services' merger agreement with Allied Waste Industries, Inc.

In a letter to Waste Management, Republic Services noted Allied Waste's offer was less conditional and offered more long-term value and certainty for Republic Services' stockholders.

Waste Management said it continues to believe its revised proposal would provide superior value to Republic Services stockholders.

According to a Waste Management statement, the company could close the transaction in late 2008 or early 2009 with the cooperation of Republic Services.

It was previously reported that Republic Services Inc. granted a request by Bill Gates' Cascade Investment, LLC to waive section 203 of the Delaware General Corporation Law regarding the acquisition of up to 20% of Republic Services' outstanding shares. Investors Bill and Melinda Gates opposed Waste Management's earlier offer to acquire Republic Services for $34 per share.

Waste Management's July 14 offer was rejected by Republic Services in favor of its June 23 agreement to be acquired by Allied Waste Industries, Inc.

Under the agreement with Republic Services, Allied Waste shareholders will receive 0.45 of a share of Republic Services common stock for each share of Allied Waste common stock.

Republic Services, based in Fort Lauderdale, Fla., provides environmental services, including solid waste collection, transfer and disposal services. Allied Waste is a non-hazardous solid waste services company located in Phoenix.

Allied Waste is the second-largest non-hazardous solid waste services company in the United States. The company is based in Phoenix.

Waste Management is a Houston-based provider of integrated waste services.

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