- Pre-Market Indications

Monday, August 11, 2008

Opening View: Waste Management Ups the Ante for Republic Services

Turning to currencies and commodities, the U.S. Dollar Index has declined by 0.14% this morning, as the greenback ticks lower against most of its foreign rivals. As a result, gold traded at $863.75 an ounce in London, compared to $852.50 late Friday. At last check, the front-month crude contract has added $1.20 to dawdle around $116.40 per barrel, as oil futures jump higher in the wake of intensified fighting between Russia and Georgia.

In merger-and-acquisition news, Waste Management (WMI: View sentiment for WMIsentiment, chart, options) upped its buyout offer for rival Republic Services (RSG: View sentiment for RSGsentiment, chart, options) by 9% to $37 per share. The nation's largest trash hauler is now willing to pay roughly $6.99 billion for RSG, which rejected WMI's original offer of $34 per share last month. The new bid represents a 32.6% premium to RSG's closing price of $34.86 on Friday. Waste Management reps stated that any deal between the duo could close by early next year.

In other M&A news, an executive at United Parcel Service (UPS: View sentiment for UPSsentiment, chart, options) reportedly stated that paying billions for Dutch rival TNT would devalue its own shares. The global logistics firm allegedly hopes to buy a firm in China instead. The Sunday Telegraph had originally reported that UPS was planning to bid 10 billion euros ($15.2 billion) for TNT.

On the earnings front, Berkshire Hathaway (BRK: View sentiment for BRKsentiment, chart, options) late Friday reported its second-quarter net income fell to $2.88 billion, or $1,859 a class A share, from $3.12 billion, or $2,018 a class A share, a year prior. Operating income - which excludes net realized investment gains and losses - was $2.27 billion, or $1,465 a class A share, down from $2.51 billion, or $1,625 a class A share, a year ago. Revenue for the quarter jumped to $30.1 billion from $27.3 billion in the period a year earlier. Warren Buffet and company attributed the 8% drop in earnings to losses from derivatives contracts and lower insurance premiums.

Opening View: Waste Management Ups the Ante for Republic Services

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