Trash hauler Waste Management (WMI) withdrew its proposal to acquire fellow garbage collector Republic Services (RSG - Get Report), saying Monday that the turmoil in the financial markets convinced it to reconsider the bid.
"When we began this process, we said that we would be a disciplined buyer and that we would not risk our strong financial position to acquire Republic," Waste Management CEO David Steiner said in a press release. "Given the current state of the financial markets, we believe that it would not be prudent to continue to pursue the acquisition of Republic."
Republic hasn't been particularly interested in a deal with Waste Management, instead opting to seek a merger with Allied Waste (AW).At the same time, Waste Management forecast revenue of $3.53 billion for the third quarter, a 3.6% year-over-year increase. The Houston-based company expects earnings of 62 cents to 63 cents a share, excluding certain items. On average, analysts are looking for 60 cents. Full results will be issued Oct. 30.