Republic-Allied: What They’re Saying
Last week’s announcement that Fort Lauderdale, Fla.-based Republic Services and Phoenix-based Allied Waste Industries are holding merger talks has sparked a significant amount of coverage in the mainstream media.
• This report by Reuters’ Helen Chernikoff says that financial analysts, on the whole, say the deal would be good for the industry. Says the article: “While trash haulers until recently had to sacrifice price to chase volume, fewer players would increase the potential for price hikes. Goldman Sachs analysts told clients in a note their impression of the deal was ‘largely positive’ because it would enhance pricing discipline.”
However, the piece also notes that investors may have concerns about the Justice Department opposing a potential deal for antitrust reasons.
• According to this piece from Forbes.com, Standard & Poor’s Ratings Services “has placed its ‘BBB+’ long-term and ‘A-2′ short-term corporate credit ratings on Repubic Services Inc. on negative watch and placed its ‘BB’ corporate credit rating on Allied Waste Industries Inc. on positive watch.”
• The Wall Street Journal’s Matthew Karnitschnig, citing “people familiar with the matter,” reports that “though the talks are at an advanced stage, an agreement wasn’t immiment” and says “the deal could still fall apart.” Another tidbit: “The merged company would have its headquarters in Phoenix, which is Allied’s hometown, and adopt Allied’s name.”
Related Topics: Waste Industry
