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Waste firms talking merger?
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June 5, 1998: 9:17 a.m. ET
Allied Waste said to bid $7 billion for rival trash master Browning-Ferris
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NEW YORK (CNNfn) - Waste management company Allied Waste Industries Inc. has made a $7 billion stock offer to acquire much larger rival Browning-Ferris Industries, a newspaper report said Friday.
Although the Wall Street Journal reported that exact terms of the merger aren't yet known, it said that any formal offer would be at a premium above Browning's current market capitalization of $6.7 billion.
With annual revenue of $5.78 billion, Houston-based Browning is the second-largest U.S. waste management firm, behind industry leader Waste Management Inc.
Although Scottsdale, Ariz.-based Allied is much smaller, with $875 million in revenue, its stock has performed very well since the company began an aggressive consolidation campaign with its 1996 acquisition of Laidlaw Inc.'s (LDW) waste business [for a 3-year Allied stock chart, click here].
The deal is reminiscent of the $13.5 billion merger of Waste Management (WMX) and USA Waste Services Inc. (UW) announced in March.
That announcement provoked speculation that other industry leaders would scramble to find consolidation partners, the Journal said.
Both Allied and Browning refused official comment.
Allied Waste (AWIN) closed down 1/16 at 26-13/16 Thursday, while Browning (BFI) closed up 5/16 at 34-1/4. 
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