January 10, 2001, 11:47 AM — CHELLO BROADBAND AND Excite@Home have abandoned plans to merge, the companies announced Tuesday.
The transaction had been "complex, with a number of difficult business issues to resolve," said Mark Schneider, chairman and chief executive officer of Chello's parent company, United Pan-Europe Communications (UPC). Schneider said the parties "worked hard" to resolve the issues, but were unable to reach agreement.
In July, UPC and Excite@Home announced their plans for the creation of Excite Chello. The new company was to combine Schipol Rijk, the Netherlands-based Chello Broadband, UPC's cable Internet service provider, and the international operations of Excite@Home. They said it would be the largest broadband company outside of North America, operating in 15 countries in Europe, Latin America, and Asia Pacific and serving more than 300,000 broadband subscribers.
But it was not to be. Amsterdam-based UPC recently indicated that it was unable to move forward with the Excite Chello transaction as planned due to market conditions, Excite@Home said in a statement. After considering alternative proposals, Redwood City, Calif.-based Excite@Home decided that it was no longer appropriate to pursue this transaction, the company said.
Joris Evers is an Amsterdam correspondent for the IDG News Service, an InfoWorld affiliate.