Laidlaw Bids $1.8 Billion for Safety-Kleen

Laidlaw Environmental Services Inc. made a hostile bid for recycler Safety-Kleen Corp., offering $1.8 billion in cash, stock and assumed debt after the company spurned previous friendly takeover attempts. Laidlaw, based in Columbia, S.C., is offering $14 in cash and 2.4 shares of its stock for each of the 58.3 million outstanding Safety-Kleen shares, a deal worth $1.8 billion with the assumption of the company’s $246 million in debt. Elgin, Ill.-based Safety-Kleen’s stock jumped $3.81 to close at $25.75 on the New York Stock Exchange. Laidlaw’s stock rose 6 cents to close at $5, also on the NYSE. Safety-Kleen in early August said it was exploring alternatives to boost its share price, including an acquisition or sale. The company’s stock had languished in the $13-to-$18 range for years before the announcement but had recently been on the rise amid expectations of a sale. The company apparently already has other suitors. It said in a statement that it will consider Laidlaw’s proposal, “along with those of others and other strategic alternatives.” Laidlaw, which already owns 600,000 shares of Safety-Kleen stock, has secured the financing for the acquisition, the company said.