this from the stuff web site in nzBattle on for waste firm 02...

this from the stuff web site in nz

Battle on for waste firm
02 November 2006
By GARETH VAUGHAN

Waste Management buyer Transpacific Industries is among four bidders left in the running to sweep up rubbish disposal company EnviroWaste Services.


It is believed that Queensland- based Transpacific and Australian private equity funds are fighting it out for EnviroWaste, at present owned by road building, engineering and construction group Fulton Hogan. A sale, valued at between $250 million and $400 million, is expected within the next five weeks.

Transpacific's rival bidders are believed to include a combined bid from Quadrant Private Equity and Nikko Principal Investments, Ironbridge Capital and Pacific Equity Partners, which already owns several New Zealand companies including Griffins, Tegel and Whitcoulls.

A spokeswoman for Transpacific chairman Terry Peabody and New Zealand managing director Greg Campbell said Transpacific could not discuss EnviroWaste because of a confidentiality agreement. Interests associated with Mr Peabody own 51 per cent of Transpacific.

Fulton Hogan chief financial officer Guy Pierce said Fulton Hogan would decide by early next month whether to sell EnviroWaste, which is understood to have annual earnings before interest, tax, depreciation and amortisation of $25 million to $30 million.

Mr Pierce confirmed a "small number" of bidders were left in the running but declined to name them.

Fulton Hogan unveiled a strategic review of its ownership of New Zealand's second biggest solid waste business in August after ownership of Waste Management and Cleanaway, Australia's biggest rubbish management operator, changed hands.

More than 10 indicative bids were lodged with its adviser Goldman Sachs JBWere about two weeks ago, with the field since trimmed to four.

EnviroWaste operates rubbish collection, processing and disposal facilities throughout New Zealand. The strong, market position of a combined Waste Management- EnviroWaste means the Commerce Commission would be expected to look closely at any Transpacific acquisition of EnviroWaste.

Commission spokeswoman Jacqueline Martin said no bidders had yet lodged applications for clearance to buy EnviroWaste.

Transpacific sealed the controversial $870 million takeover of Waste Management in June.

That deal, an amalgamation proposal under the Companies Act, upset some institutional investors because of its structure. The structure meant Transpacific needed 75 per cent shareholder backing to take 100 per cent of Waste Management instead of the 90 per cent required by standard Takeovers Code offers.

Mr Pierce said Fulton Hogan watched Transpacific's acquisition of Waste Management and the A$1.8 billion (NZ$2.1 billion) purchase of Cleanaway by American private equity firm Kohlberg Kravis Roberts closely. These deals signalled other parties might attribute greater value to EnviroWaste than Fulton Hogan did, he said. Transpacific bid unsuccessfully for Cleanaway.

EnviroWaste was established in 1995 through the merger of Auckland's Northern Disposal Systems with Fulton Hogan's South Island waste collection businesses.