Pete Waterman was just interviewed on the BBC. he met Whitney Houston at a Rick Astley concert, and they did talk about doing some collaboration together, in the end they couldn't agree terms.
He said he thought the main problem was her entourage, and that he was never sure he was actually talking to her. Her entourage insisted on him calling, and referring to her as Miss Houston. At the time Waterman had a record at No 1 and he called Paul McCarney, Paul, but the entourage kept her at a distance. That's where he
thought the problems started.