Waste Management tries again for Republic

Houston-based Waste Management (NYSE: WMI), the No. 1 waste and environmental services company in the U.S., announced today that it increased its offer for Ft. Lauderdale, Fla. rival Republic Services (NYSE: RSG).

Waste Management's new $37 per share bid, up from $34, is the company's latest move in trying to block Republic Services' plans to acquire Phoenix-based Allied Waste Industries (NYSE: AW), which would combine the No. 2 and No. 3 trash haulers in the country.

In addition to landfill and garbage collection services, all three companies have significant recycling operations, as well as landfill gas to energy and waste to energy operations.

Republic has repeatedly said it's committed to its deal with Allied Waste, and last month Republic's board adopted a poison pill to block anyone from buying more than 10 percent of its stock without board approval (see Waste Management still gunning for Republic).

The new rule also blocks the acquisition of more than 20 percent of Republic shares for groups already holding 10 percent of the company.

But Waste Management isn't giving up.

"Our $37 all-cash proposal clearly offers Republic stockholders a better and more certain value alternative than is contemplated in the Republic-Allied transaction," said David Steiner, CEO of Waste Management.

"We believe our proposal is clearly superior for Republic's stockholders and is designed so we can work cooperatively with Republic to structure a transaction that would benefit both Republic and Waste Management stockholders."

In addition to boosting its per share offer, Waste Management said it would pay Republic a $250 million break-up fee if the deal is blocked by the U.S. Department of Justice.

Waste Management said it would also pay interest on its $37 per share offer if the deal fails to close by a set date due to antitrust clearance delays.