NEW YORK MeriStar Hotels & Resorts revised the share exchange ratio of its merger agreement with ski resort operator American Skiing Co. due to lower leakage from leased hotels and lower management fees.
Under the terms of the new agreement, each MeriStar share will be exchanged for 1.75 shares of American Skiing, which will be renamed Doral International in a tax-free, stock-for-stock merger, the companies said. Under the original terms of the deal, announced in December, each share of MeriStar stock would have been exchanged for 1.88 shares of Doral International.
Paul Whetsell, chairman/CEOof MeriStar noted that the change in the exchange ratio is the result the company s expectation that management fees for the next several periods will be lower than previously anticipated. (2/23/01)
SOURCE: Reuters