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."

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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.

This article was written by a staff member of TheStreet.com.