Excite@Home pulls out of Chello merger

Excite@Home has scrapped its merger with European cable operator Chello.

The falling share price of Chello's parent company United Pan-Europe Communications meant Chello was unable to proceed with the deal as it stood. After examining the available options, Excite has decided to pull out altogether. The deal allowed Excite to cancel without incurring any financial penalty, and the company is now free to look for new partners, executives said. However, Mark McEachen, CFO of Excite, told reporters that the company had not ruled out any collaboration with UPC in the future.