Plan Would Create $12 Billion Waste Company

June 25, 2008

The Teamsters Union has assembled a team of experts to carefully monitor the announced merger of Republic Services Inc. and Allied Waste Industries Inc. to ensure that Teamster employees' interests are protected.

"We have put together legal, financial and strategic experts to do whatever it takes to protect our members' interests throughout the process," said Bob Morales, Director of the Teamsters Solid Waste, Recycling and Related Industries Division.

"At this point, there are a lot of unknowns but as we develop information and gain insight, we will share that with local union leaders and our members," Morales said. "A special page will be established on the International Union's web site where members and local unions can turn to get the latest updates."

According to the Wall Street Journal, on June 24, Republic Services Inc. said it plans to merge with Allied Waste Industries for $6.24 billion in stock, creating a $12 billion waste and environmental services company.

The transaction, if it clears regulatory hurdles and is approved by shareholders of both companies, is expected to close by the fourth quarter of 2008, generate about $150 million in net annual synergies and add to Republic's earnings per share in the first year following completion of the merger.

Under the plan, Allied shareholders will receive 0.45 shares of Republic common stock for each Allied share. Based on last Friday's close, that amounts to $14.04 a share, a 3.5 percent premium.

Republic will issue about 198 million shares to Allied shareholders, representing about 52 percent ownership of the combined company. The new company will reportedly take the Republic name and be based in Phoenix, Arizona.

The Teamsters Union represents about 3,000 workers at Republic and more than 5,000 at Allied Waste.

Workers at the companies who find out more information about the merger are urged to contact their stewards or their local union leaders.