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November 10, 2009

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Merger off for Carnival, Fairfield

Monday, Feb. 28, 2000 | 11:58 a.m.

MIAMI -- Carnival Corp.'s plummeting stock price has killed the cruise industry leader's planned entry into the time share market.

The purchase of Fairfield Communities Inc. was worth $725 million when it was announced last month, but the stock market correction has trimmed the value of the all-stock transaction by 38 percent.

The decision to drop the takeover was "based on recent disruptions within the stock market that have resulted in a negative impact on Carnival's stock," Chairman Micky Arison said Friday in a statement.

Carnival's stock set a 52-week low last week and closed Friday at $27.63. Fairfield's value has fallen 26 percent to $8.94.

Carnival had agreed to issue 0.3164 of a share of stock for each Fairfield share and absorb $50 million in the debt of Fairfield, which is active in the Las Vegas market.

Orlando-based Fairfield has been selling Carnival brand cruises through its vacation program since 1996, and Fairfield chief executive Jim Berk expects to maintain "a long-term mutually beneficial association."

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