Merger Partners Scrap $3-Billion Deal

Johns Manville Corp. said its previously announced merger pact with an investor group led by affiliates of Hicks, Muse, Tate & Furst Inc. has terminated. The companies agreed to break off the agreement because of weak industry conditions, an increasingly negative outlook for the economy and unfavorable financing markets, the Denver-based maker of building materials said. In mid-October, Johns Manville said it was renegotiating the $3-billion merger deal, originally announced in June, after the company reported disappointing quarterly earnings. Manville shares fell 75 cents to close at $9.25 on the New York Stock Exchange.