Monday, July 14, 2008 | 3:56 p.m.
Waste Management launched an unsolicited surprise counter offer today to buy Republic Services for about $6.19 billion, according to the Waste Business Journal. Republic Services has an exclusive contract to collect residential and business trash in Clark County.
The bid could derail Republic's deal to acquire Allied Waste Industries, Inc., for $6.77 billion, Waste Business Journal reported this afternoon.
Republic said in a statement that it would carefully review the proposal and respond, but the company noted that it already had a "definitive merger" agreement with Allied Waste.
Waste Management's bid of $34 per share represents a 22 percent premium to Republic's recent closing price, but that stock had been off by 17 percent since rumors of its deal to buy Allied first surfaced, the business publication reported.
Republic Services made headlines in the Sun when the company claimed it did not need county commissioners' approval to start charging valley residents more for garbage collection.
Republic proposed to increase residential garbage bills by 6.47 percent. Republic took in nearly $274 million in revenue last year from Southern Nevada.
The company is trying to push the country into a rate increase to help pay for closing the old Sunrise Landfill, which burst open during a September 1998 storm, dumping garbage into the Las Vegas Wash and Lake Mead, Southern Nevada's major drinking water supply.
Clark County attorneys said last year that Republic is solely responsible for cleaning up Sunrise Landfill under a 1999 agreement. In exchange for the work, the company's exclusive solid waste collection contract with the county was extended 15 years to 2035.
Republic has spent nearly $30 million on the dump, but an estimated $36 million in work remains.
A discussion with commissioners over new charges is expected at Tuesday's County Commission meeting.