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EXHIBIT 99(e)
Laidlaw Environmental Services Safety-Kleen
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A POWERFUL COMBINATION
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REQUEST FOR
LEVEL PLAYING FIELD
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REQUEST FOR LEVEL PLAYING FIELD
Question Answer
What does Laidlaw A level playing field
Environmental want that maximizes value
from Safety-Kleen? for all Safety-Kleen
shareholders
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HISTORY OF STONEWALLING
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LAIDLAW ENVIRONMENTAL SAFETY-KLEEN
Initial Proposal 9/24 Rebuffed
Offer to acquire
Safety-Kleen for $25.85(1) 11/3 Rebuffed
Request for shareholder list and a
special meeting to restore voting rights 11/13 Rebuffed
Increased Offer to $30.00(2) 11/20 Rebuffed
(1) $14.00 in cash and 2.4 shares of LLE stock valued at 11/3/97.
(2) $15.00 in cash (subject to reduction, on a pro rata basis, for up to $75
million for certain break-up fees and expenses of Safety-Kleen relating to
its proposed merger) and $15.00 in LLE stock assuming LLE stock price
remains within the collar ($4.28571 - $5.35714). Assuming there are
64,072,067 shares of Safety-Kleen common stock outstanding on a
fully-diluted basis, the maximum reduction in the cash consideration per
share would be approximately $1.171.
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SAFETY-KLEEN SHAREHOLDERS CAN
BREAK THROUGH THE WALL
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- One of the conditions to
A "YES" VOTE TO RESTORE LLE'S Laidlaw Environmental's
FULL VOTING RIGHTS ASSURES THAT THE proposal is restoration of
AUCTION CONTINUES full voting rights for any
shares of Saftey-Kleen it
acquires
- Court ordered Safety-
Kleen to call shareholder
meeting
- Shareholders being asked
simply to restore full
voting rights
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VOTE "NO" TO THE
BUYOUT MERGER
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VOTE "NO" TO THE BUYOUT MERGER
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- - Safety-Kleen Board failed to conduct a fair auction
- - Failed to maximize shareholder value
- - Excessive and unjustified "break-up" fees reduce value to shareholders
- - Buyout Merger highly conditional - commitment only from a shell corporation;
numerous conditions precedent
- - No independent fairness opinion
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SAFETY-KLEEN BOARD FAILED TO
CONDUCT A FAIR AUCTION
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- - Exercised absolute control over sale process
- standstill agreement
- bidding by "invitation only"
- - Process benefited management at shareholders' expense
- equity stake for management
- no reduction in headquarters staff
- - No Free Lunch: no synergies equals lower value for shareholders
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LAIDLAW ENVIRONMENTAL'S $30.00 OFFER
IS SUPERIOR
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<TABLE>
<CAPTION>
BUYOUT MERGER LLE OFFER
------------------- -----------------------------
<S> <C> <C>
PRICE $27.00 $30.00(1)
CONSIDERATION Cash $15.00 cash(1)/$15.00 stock(1)
COLLAR NA $4.28571 - $5.35714
TOTAL VALUE(2) $1.9 billion $2.1 billion
FINANCING Buyout Group equity Commitment
and debt commitment from T-D Bank
from Chase
EXPECTED CLOSING First quarter 1998 First quarter 1998
TAX TREATMENT Fully taxable Potential for tax deferral if
Safety-Kleen board agrees to
merger
APPROVAL Customary Customary
SYNERGIES None(3) $100 - $130 million
</TABLE>
(1) $15.00 in cash (subject to reduction, on a pro rata basis, for up to $75
million for certain break-up fees and expenses of Safety-Kleen relating
to its proposed merger) and $15.00 in LLE stock assuming LLE stock price
remains within the collar ($4.28571 - $5.35714). Assuming there are
64,072,067 shares of Safety-Kleen common stock outstanding on a fully-
diluted basis, the maximum reduction in the cash consideration per share
would be approximately $1.171.
(2) Includes the assumption of $246 million of debt.
(3) Attributed to Allen Fracassi, Philip Services President and CEO, at
November 20, 1997 "by invitation only" presentation to analysts and
institutional shareholders.
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BUYOUT MERGER PRICE BELOW MARKET
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[Graph of Safety-Kleen Share price over time, showing that
the Buyout Merger Price of $27 per Share is lower than the
Safety-Kleen trading prices since 11/20.]
$30
$29
$28
$27
$26
$25
$24
11/13/97 11/20/97 11/25/97 12/8/97 12/20/97 1/2/98
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SEEKING COURT RULING THAT SAFETY-KLEEN
BOARD VIOLATED FIDUCIARY DUTY
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- - Laidlaw Environmental believes break-up fees and expenses are excessive
and unjustified
- 5% of equity value
- payable even if shareholders vote down Buyout Merger
- Buyout Group's "Second Bite" chills bidding
- 9-month tail
- -Safety-Kleen Board granted break-up fees in the face of Laidlaw Environmental's
proposal and publicly stated willingness to increase its offer
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BREAK-UP FEES AND EXPENSES REDUCE SHAREHOLDER VALUE
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Shareholder Value ----> Buyout Group Mgmt. [Flow Chart]
- - Break-Up Fees & Expenses up to
$75 million ($1.17 per share)
Break-up Fees and Expenses total 5% of equity value, nearly twice the level
approved by courts in other transactions
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BUYOUT MERGER HIGHLY CONDITIONAL
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- - Debt and equity commitments subject to numerous contingencies(1)
- - "Fraudulent Conveyance" specifically excluded from William Blair Opinion
- Solvency opinion yet to be delivered
- No independent fairness opinion
- - Safety-Kleen's only recourse for a breach by the Buyout Group would be against
the "shell" corporation
(1) These contingencies are described in Safety-Kleen's Schedule 14D-9.
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LAIDLAW ENVIRONMENTAL & SAFETY-KLEEN:
A POWERFUL COMBINATION
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LAIDLAW ENVIRONMENTAL PROFILE
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- - Largest and most integrated hazardous and industrial waste management company
in North America
- - Leading industry consolidator in North America
- - Seasoned management team with a proven track record of business integration
success - two major acquisitions and integrations within the past three years
- - More than 30% of revenues from non-hazardous industrial waste management
- - Low cost base-efficient operator
- - Strong, well-positioned firm with significant Laidlaw Inc. sponsorship
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BENEFIT TO SAFETY-KLEEN SHAREHOLDERS
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- - Superior near term value
- - Significant upside potential based on anticipated
synergy level of $100+ million
- - Attractive acquisition currency
- - Value protected via collar
- - No financing contingency
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SIGNIFICANT UPSIDE POTENTIAL BASED ON
EXPECTED SYNERGIES OF $100+ MILLION
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- - SG&A Reductions
- - Waste Internalization
- - Processing Site Consolidation
- - Service Center Consolidation
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SIGNIFICANT SYNERGY POTENTIAL
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[Map of Safety-Kleen and Laidlaw Environmental Facility
Locations in North America]
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PROVEN TRACK RECORD OF SYNERGY REALIZATION(1)
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($ in millions)
SYNERGIES ACHIEVED(2)
IN ROLLINS MERGER
---------------------
Personnel Reductions $48
Plant Closure 16
SG&A Function 8
----
Total Cash Savings 72
Depreciation Reduction 18
----
Total Savings $90
====
(1) There is no assurance that cost savings will be
realized following the proposed combination solely
because LLE realized cost savings following prior
transactions.
(2) On an annualized basis.
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ATTRACTIVE ACQUISITION CURRENCY
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[Graph representing closing prices of Laidlaw Environmental, Peer Group, and
the S&P 500 since the consummation of the Rollins Merger. Laidlaw Environmental
significantly outperforms both its Peer Group and the S&P 500]
DAILY TRADING SINCE CLOSE OF ROLLINS MERGER
250.0%
200.0%
150.0%
100.0%
50.0%
<TABLE>
<CAPTION>
May 1997 June 1997 July 1997 Aug. 1997 Sept. 1997 Oct. 1997 Nov. 1997 Dec. 1997
------- --------- --------- --------- ---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Laidlaw Environmental
Peer Group
S&P 500
</TABLE>
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BROAD WALL STREET COVERAGE
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<TABLE>
<CAPTION>
Laidlaw
Environmental Safety-Kleen
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<S> <C> <C>
A.G. Edwards X
Bankers Trust X
Barrington Research X
Burnham Securities X
CIBC Oppenheimer X X
CS First Boston X
DLJ X
Goldman Sachs X
Merrill Lynch X X
RBC Dominion Securities X
Raymond James X
Smith Barney X X
William Blair X
</TABLE>
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FULLY DILUTED OWNERSHIP
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- - Safety-Kleen shareholders will own 40% of the combined company on a
fully diluted basis
- - Combined company will benefit from Laidlaw Inc.'s continued support
Fully Diluted
Ownership
-------------
Laidlaw Inc. 47%
LLE Public Holders 13
Safety-Kleen Holders 40
------
Total 100%
======
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INCREASED FLOAT PROVIDES LIQUIDITY
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($ in millions)
<TABLE>
<CAPTION>
Avg. Daily
Dollar Float Dollar Volume
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<S> <C> <C>
Laidlaw Environmental $293(1) $0.50(1)
New Shares Issued to
Safety-Kleen Shareholders $876(2) $2.25(3)
------ -----
Consolidated $1,119 $2.75
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</TABLE>
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(1) Based on LLE stock price of $4.875 per share.
(2) Based on $15.00 in LLE stock.
(3) 50% of Safety-Kleen normal trading volume to reflect 50% cash/50% stock
consideration mix. No assurance can be given that following the consummation
of the transaction with Laidlaw Environmental, the combined company's common
shares will trade at Safety-Kleen's historical volumes.
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Laidlaw Environmental Services Safety-Kleen
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A POWERFUL COMBINATION
