S&P keeps Waste Management, Republic Services on watch

Standard & Poor's said it said that its ratings on Waste Management Inc. (BBB/Watch negative/A-2) and Republic Services Inc. (BBB+/Watch negative/A-2) remain on CreditWatch with negative implications, where they were placed on July 14 and June 16, respectively.

The agency noted that Waste Management issued a press release indicating that it has increased its all-cash offer to acquire Republic for $37 per share from $34 per share and will incur a ticking fee and $250 million break-up fee if the transaction is either delayed or cancelled, respectively, due to regulatory issues.

Republic had said previously that Waste Management's initial offer did not constitute and could not be expected to lead to, a transaction that is more favorable to Republic stockholders than its own proposed merger between Republic and Allied Waste Industries Inc. (BB/Watch positive), S&P said.

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