Laidlaw Ups Ante as Its Target Accepts Another

Laidlaw Environmental Services Inc. sweetened its hostile bid for Safety-Kleen Corp. to $2.14 billion, or $30 a share, in cash, stock and assumed debt.

The offer came just hours after Safety-Kleen agreed to be bought by Canada’s Philip Services Corp., New York investment fund Apollo Associates Inc. and Blackstone Management Associates for $1.9 billion in cash and assumed debt.

Investors had expected South Carolina-based Laidlaw to come back with a better offer after its $25.85-a-share bid was rebuffed earlier this month by Safety-Kleen. The bidding contest for Safety-Kleen comes amid consolidation in the $50-billion-a-year North American waste management industry.

The Philip consortium will have an equal stake in Safety-Kleen if company shareholders approve its offer, which is equal to $27 a share plus assumed debt.

Safety-Kleen’s shares rose $1.31 to close at $27.38 on the New York Stock Exchange. Laidlaw fell 13 cents to close at $4.75.

Elgin, ILL.-based Safety-Kleen this week sued Laidlaw, alleging it had broken securities laws by prematurely calling a meeting of Safety-Kleen shareholders as part of its hostile bid.

The company. which specializes in providing equipment and solvents for cleaning industrial parts and in recycling solvents, dry-cleaning fluids and motor oil, said it hopes to close the sale to the consortium by the end of March.