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Carnival sinks merger
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February 25, 2000: 5:41 p.m. ET
Largest cruise line cites stock slump in ending Fairfield resorts deal
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NEW YORK (CNNfn) - Carnival Corp., the world's largest cruise vacation company, Friday canceled its planned $775 million merger with Fairfield Communities because of Carnival's sinking stock price.
"We are extremely disappointed to have to withdraw from this transaction," said Micky Arison, Carnival's chairman and chief executive officer in a statement. "The proposed combination of Fairfield and Carnival was a tremendous opportunity to capitalize on many outstanding marketing synergies that would have benefited both companies."
Arison blamed "recent disruptions within the U.S. stock market for the company's sliding shares, which traded near 52-week lows Friday.
Carnival (CCL: Research, Estimates) announced the deal with Fairfield, the Orlando, Fla.-based manager of 28 resorts nationwide and in the Bahamas, last month. Acquisition terms called for Fairfield (FFD: Research, Estimates) stockholders to receive 0.3164 share of Carnival common stock for each Fairfield common share owned.
On Friday, Carnival's shares closed near its 52-week low of 27-1/4. Shares were down 3/16 to 27-13/16 at the close.
Fairfield shares closed unchanged on the day. 
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Carnival
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