Waste Management pulls $6 billion Republic bid

Waste Management Inc., the largest U.S. trash hauler, withdrew its $6.73 billion hostile offer for Republic Services Inc. because current market conditions make the acquisition too financially risky.

The company's focus will remain on providing returns for investors, Houston-based Waste Management said today in a statement. Republic, based in Fort Lauderdale, Florida, fought the takeover attempt and has proceeded with its own agreement to buy Allied Waste Industries Inc.

Waste Management is scrapping the all-cash deal after credit markets around the world seized up following the collapse of the subprime mortgage-lending market. Standard & Poor's and Fitch Ratings Ltd. had both put the company's debt rating on watch for possible downgrades after its first offer for Republic in July.

``We said that we would be a disciplined buyer and that we would not risk our strong financial position to acquire Republic,'' Chief Executive Officer David Steiner said in the statement. ``Given the current state of the financial markets, we believe that it would not be prudent to continue to pursue the acquisition of Republic.''

Waste Management said cash flow and receipts remain strong and that it has $500 million of cash and liquid investments in U.S. government securities.

Waste Management fell $1.57, or 5.7 percent, to $25.76 in New York Stock Exchange composite trading on Oct. 10. Republic dropped 48 cents to $22.50.