Allied Waste May Benefit

Source: http://www.zacks.com/stock/news/14238/Allied+Waste+May+Benefit
Posted on Friday, August 15th, 2008 | In Market Commentary, Stocks to Watch

Contributed by: Zacks Market Commentaries (http://www.zacks.com/) -

An AP report this morning said that Waste Management (WMI), after failing to buyout rival Republic Services (RSG) for $34 per share, was again rebuffed by Republic for WMI’s $37 per share offer. A spokesperson was said to have indicated RSG preferred the earlier-proposed merger with Allied Waste Industries (AW).

Allied Waste is the only company of these three to have received much positive sentiment from analysts in the past month. For the September quarter, 4 analysts have upwardly revised estimates, and 5 analysts have done so for their fiscal year estimates. And now with Republic outwardly stating it would prefer a merger with Allied, perhaps we shall see more upward revisions. Depending, of course, how favorable a merger with Republic would ultimately be.

Though coverage of Waste Management has had 7 increases for fiscal 2008 estimates, several more analysts have downwardly revised Q3 and Q4 expectations. Part of the story has been that Waste Management is pushing its unsolicited bid merely in attempt to break apart a Republic-Allied merger.

“WMI” Free Stock Analysis: Buy? Sell? Hold?
“RSG” Free Stock Analysis: Buy? Sell? Hold?
“AW” Free Stock Analysis: Buy? Sell? Hold?
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