Republic rejects Waste Management unsolicited bid

"If you want to be more cynical, it keeps a near competitor from being created," he said.

O'Connor said Waste Management's proposal will not prompt Republic officials to change their strategy "and we are concerned that it may be an effort by our largest competitor to disrupt our plans."

As of June 20, the value of Republic's acquisition of Allied was worth $6.07 billion, based on its offer of 0.45 worth of Republic share for each Allied share held.

Outstanding shares of Allied totaled 432.5 million as of April 24, 2008.

Today, that deal is worth about $6.32 billion.

Allied said in a statement that the Waste Management proposal "does not constitute, and could not reasonably be expected to lead to, a transaction that is more favorable to Republic stockholders" than the agreement with Allied.

Waste Management reported revenue of $13.3 billion last year. Republic and Allied combined reported revenue of about $9 billion in 2007.

Shares of Republic fell 5 cents to end at $32.45 in Friday trading, while Waste Management fell 5 cents to $35.51. Allied shares rose 31 cents to close at $12.13.