The merger announcement comes 14 days after Host Funding received notice from the American Stock Exchange indicating that the company no longer complies with its listing guidelines and that, as a result, the Exchange intends to file an application with the Securities and Exchange Commission to strike the company's common stock from its listing and registration, according to information released by Host Funding Inc.

The planned merger is scheduled to close by April 16, 2001, following negotiation of definitive contracts, corporate filing requirements and completion of due diligence, Host Funding reports. While that organization will be the surviving corporation, Carnegie's management team, led by chairman E. David Gable and president Lowell Farkas, will guide the consolidated company. The new Host Funding will be based at Carnegie's headquarters in suburban Baltimore.

The merger could also help Host Funding to retain its Amex listing. Company officials are reported as saying that Host Funding has notified Amex that it plans to appeal its termination and has requested a hearing before a committee of the Amex Board of Governors. Should that fail, the surviving company plans to file an initial listing application for the company's common stock.