Bill Gates opposes Waste Management's offer to buy Republic Services

By Angela McDaniels

Tacoma, Wash., July 21 - Republic Services Inc. investors Bill and Melinda Gates do not support the recent proposal made by Waste Management, Inc. to acquire the company for $34 per share, according to a schedule 13D filing with the Securities and Exchange Commission.

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

Through Cascade Investment, LLC and the Bill & Melinda Gates Foundation Trust, the investors own 28,542,451 shares, or 15.69%, of Republic Services. They also own 2.3% of Waste Management, the filing said.

Cascade Investment and the trust are managed by investment office BGI. In Monday's filing, BGI said the offer from Waste Management undervalues the business of Republic Services and, being all cash, is risky given current market conditions.

BGI also described the Waste Management proposal as "hastily made, lacking in strategic rationale and designed to impede the pending transaction between Republic and Allied Waste."

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.

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

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