[GRRN] Allied Merger with BFI

RecycleWorlds (anderson@msn.fullfeed.com)
Tue, 9 Mar 1999 16:17:49 -0600

According to the various financial analyses in connection with the
Allied takeover of BFI, unlike the USA Waste takeover of WMI, the
transaction will not be financed with stock. Rather it will be funded with
by debt, pushing the new firm's ratio of debt to equity into the 80% range
(normally it is considered high when the ratio exceeds even 50% because
there is a very large block of bonds on which interest and principle
retirement must be paid or one's assets get put on the auction block).

This means the transaction is very shaky and, for example, an economic
downturn or a failure to capture projected cost savings could collapse the
Peter Anderson
RecycleWorlds Consulting
4513 Vernon Blvd. Ste. 15
Madison, WI 53705-4964
Phone:(608) 231-1100/Fax: (608) 233-0011