Gates Investment Arm Opposes Waste Management-Republic Deal
DOW JONES NEWSWIRES
BGI, the investment office that manages the assets of
BGI noted that Cascade Investment LLC and the Bill & Melinda Gates Foundation Trust are long-term shareholders of Waste Management, holding in total about 2.3% of the company. Cascade is owned by Gates, and the Gates trust manages the assets that fund the Bill & Melinda Gates Foundation.
In a letter to Waste Management's chief executive and board, BGI said, "We can only assume your ill-timed and poorly conceived pursuit of Republic is designed to disrupt what you perceive as a competitive threat to your position in the market."
BGI said it believes the company's shareholders and competitive position would be better protected without a merger. "An acquisition of Republic will most certainly burden the company with excessive debt, distract your management, result in significant regulatory burdens and thereby reduce shareholder value."
Before Waste Management's bid for Republic, that No. 3 trash hauler had
launched its own
Waste Management's shares closed Thursday at
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