American ISP Excite@Home yesterday abandoned the proposed merger of its non-US business with Dutch-based company Chello Broadband.
The deal, drawn up in the summer [WAMN: 19-Jul-00], planned to create a new venture, Excite Chello, combining Excite@Home’s Asia-Pacific and European broadband and media interests with the assets and distribution facilities of Chello’s parent, UnitedGlobalCom.
However, United recently rejected the plans on account of market conditions, asking Excite to mull an alternative agreement. Excite has now decided to kill the merger, stating: “It was no longer in the best interests of shareholders, customers, overseas joint venture partners and employees to pursue this transaction”.
The company added: “Among other concerns, Excite@Home believes that the complexity of the proposed Excite Chello venture, including the involvement of multiple shareholders with differing opinions and interests, would pose a risk to the swift execution of Excite@Home's international strategy and the continued rapid growth of its international broadband and media ventures”.
News source: Advertising Age - International Daily