MeriStar, American Skiing Halt Merger Deal

WASHINGTON, DC-MeriStar Hotels & Resorts and American Skiing Company have called off their pending merger because the souring economy has made it hard for the companies to come up with the capital to finalize the deal, according to company officials. According to MeriStar chairman and CEO Paul Whetshell, the decision to halt the merger was mutual and neither company will have to pay termination fees, but MeriStar has cancelled its scheduled March 26 shareholders meeting.

“Given the slowdown in the economy, we believe it is more prudent for us to continue to focus on our core business of operating hotels, rather than consummate the merger,” says Whetsell. “American Skiing has great potential, and we wish them well in their future endeavors.”