1
EXHIBIT 99(e)
Laidlaw Environmental Services Safety-Kleen
[Logo] [Logo]
A POWERFUL COMBINATION
2
REQUEST FOR
LEVEL PLAYING FIELD
3
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
4
HISTORY OF STONEWALLING
- -------------------------------------------------------------------------------
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 for certain break-up fees, new
severance costs and certain expenses of Safety-Kleen) and $15.00 in
LLE stock assuming LLE stock price remains within the collar
($4.28571 - $5.35714).
5
SAFETY-KLEEN SHAREHOLDERS CAN
BREAK THROUGH THE WALL
- -------------------------------------------------------------------------------
- Laidlaw Environmental's
A "YES" VOTE ASSURES THE proposal conditioned on
SAFETY-KLEEN ability to vote shares
AUCTION CONTINUES
- Court ordered Safety-
Kleen to call shareholder
meeting
- Shareholders being asked
simply to restore full
voting rights
6
VOTE "NO" TO THE
BUYOUT MERGER
7
VOTE "NO" TO THE BUYOUT MERGER
- ---------------------------------------------------------------------------
- - 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 from only a shell corporation;
numerous conditions precedent
- - No independent fairness opinion
8
SAFETY-KLEEN BOARD FAILED TO
CONDUCT A FAIR AUCTION
- -----------------------------------------------------------------------------
- - Exercised absolute control over sale process
- standstill agreement
- bidding by "invitation only"
- - Directed process to entrench management
- significant equity stake for management
- no reduction in headquarters staff
- - No Free Lunch: no synergies equals lower value for shareholders
9
LAIDLAW ENVIRONMENTAL'S $30.00 OFFER
IS SUPERIOR
- ------------------------------------------------------------------------------
BUYOUT MERGER LLE OFFER
------------------- -----------------------------
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 million $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
on stock component
APPROVAL Customary Customary
SYNERGIES None(3) $100 - $130 million
(1) $15.00 in cash (subject to reduction for certain break-up fees, new
severance costs and certain expenses of Safety-Kleen) and $15.00 in
LLE stock assuming LLE stock price remains within the collar
($4.28571 - $5.35714).
(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.
10
BUYOUT MERGER BELOW MARKET
- -----------------------------------------------------------------------------
[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 11/20 11/27 12/4 12/11
11
SEEKING COURT RULING THAT SAFETY-KLEEN
BOARD VIOLATED FIDUCIARY DUTY
- -------------------------------------------------------------------------
- - 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
12
BREAK-UP FEES AND EXPENSES REDUCE SHAREHOLDER VALUE
- ----------------------------------------------------------------------------
THE BUYOUT GROUP MERGER IS TAKING MONEY AWAY FROM SHAREHOLDERS
Shareholders Value ----> Buyout Group Mgmt. [Flow Chart]
- - Break-Up Fees & Expenses
$75 million ($1.28 per share)
- - Severance Costs
$50 million ($0.86 per share)
- - Total Burden $125 million ($2.14 per share)
Break-up Fees and Expenses total 5% of equity value, nearly twice the level
approved by courts in other transactions
Total burden approved by Board = 8% of equity value
13
BUYOUT MERGER HIGHLY CONDITIONAL
- ---------------------------------------------------------------------------
- - Debt and equity commitments subject to numerous contingencies
- - "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
14
LAIDLAW ENVIRONMENTAL & SAFETY-KLEEN:
A POWERFUL COMBINATION
15
LAIDLAW ENVIRONMENTAL PROFILE
- --------------------------------------------------------------------------
- - 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
16
BENEFIT TO SAFETY-KLEEN SHAREHOLDERS
- ------------------------------------------------------------------------
- - 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
17
SIGNIFICANT UPSIDE POTENTIAL BASED ON
EXPECTED SYNERGIES OF $100+ MILLION
- --------------------------------------------------------------
- - SG&A Reductions
- - Waste Internalization
- - Processing Site Consolidation
- - Service Center Consolidation
18
SIGNIFICANT SYNERGY POTENTIAL
- -----------------------------------------------------------
[Map of Safety-Kleen and Laidlaw Environmental Facility
Locations in North America]
19
PROVEN TRACK RECORD OF SYNERGY REALIZATION
- ---------------------------------------------------------
($ in millions)
SYNERGIES ACHIEVED(1)
IN ROLLINS MERGER
---------------------
Personnel Reductions $48
Plant Closure 16
SG&A Function 8
----
Total Cash Savings 72
Depreciation Reduction 18
----
Total Savings $90
====
(1) On an annualized basis.
20
ATTRACTIVE ACQUISITION CURRENCY
- --------------------------------------------------------------------------
[Graph representing closing prices of Laidlaw Environmental, Peer Group, and
the S&P 500 since the consummation of the Rollins Merger. Laidlaw Environmental
significantly outperforms both its Peer Group and the S&P 500]
DAILY TRADING SINCE CLOSE OF ROLLINS MERGER
250.0%
200.0%
150.0%
100.0%
50.0%
May 1997 June 1997 July 1997 Aug. 1997 Sept. 1997 Oct. 1997 Nov. 1997 Dec. 1997
------- --------- --------- --------- ---------- --------- --------- ---------
Laidlaw Environmental
Peer Group
S&P 500
21
BROAD WALL STREET COVERAGE
- ------------------------------------------------------------------------
Laidlaw
Environmental Safety-Kleen
-------------- ------------
A.G. Edwards X
Bankers Trust X
Barrington Research X
Burnham Securities X
CIBC Oppenheimer X X
CS First Boston X
DLJ X
Goldman Sachs X
Merrill Lynch X X
RBC Dominion Securities X
Raymond James X
Smith Barney X X
William Blair X
22
FULLY DILUTED OWNERSHIP
- -----------------------------------------------------------------------
- - Safety-Kleen shareholders will own 40% of the combined company on a
fully diluted basis
- - Combined company will benefit from Laidlaw Inc.'s continued support
Fully Diluted
Ownership
-------------
Laidlaw Inc. 47%
LLE Public Holders 13
Safety-Kleen Holders 40
------
Total 100%
======
23
INCREASED FLOAT PROVIDES LIQUIDITY
- --------------------------------------------------------------------------
($ in millions)
Avg. Daily
Dollar Float Dollar Volume
------------ -------------
Laidlaw Environmental $293(1) $0.50(1)
New Shares Issued to
Safety-Kleen Shareholders $876(2) $2.25(3)
------ -----
Consolidated $1,119 $2.75
====== =====
- ---------------------
(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.
24
Laidlaw Environmental Services Safety-Kleen
[Logo] [Logo]
A POWERFUL COMBINATION