Waste Management Withdraws $6.73 Billlion For Republic

New York, NY (AHN) - Waste Management, Inc. said on Monday it had decided to withdraw from acquiring all of the outstanding shares of Republic Services, Inc., due to current financial market condition.

The largest North American trash hauler had made an hostile bid, raising the offer by 8.8 percent to $6.73 billion to stop its efforts to purchase other rival, Phoenix, AZ-based Allied Waste Industries Inc. Allied had offered $6.24 billion for acquisition.

Under the new terms, Houston, TX-based Waste Management had agreed to takeover all the shares of Fort Lauderdale-based Republic Services for $37 a share in an all-cash transaction.

"Given the current state of the financial markets, we believe that it would not be prudent to continue to pursue the acquisition of Republic," David Steiner, Waste Management's chief executive, said in a statement.

In its preliminary quarterly report, the firm also said that it expects third quarter earnings to be 62 cent per diluted share, with revenues of $3.53 billion, a 3.6% increase compared with the third quarter of 2007.

In morning trading on the New York Stock Exchange, shares of Waste Management gained by $3.35, or 13 percent, to $29.11, while Republic Services moved up by $3.35, or 13 percent, to $29.11.