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Marriott wins over Starwood with bid worth $14.4 billion | Marriott wins over Starwood with bid worth $14.4 billion |
(about 1 hour later) | |
NEW YORK — Marriott won over Starwood with a sweetened bid worth more than $14.4 billion just days after a Chinese insurance company appeared to steal it away from the hotel chain with a more lucrative offer. | NEW YORK — Marriott won over Starwood with a sweetened bid worth more than $14.4 billion just days after a Chinese insurance company appeared to steal it away from the hotel chain with a more lucrative offer. |
The buyout, which may still be contested by China’s Anbang, would create the world’s biggest hotel company and give Marriott a stable of tony properties run by Starwood, like the St. Regis New York. | |
Starwood, which owns Sheraton, Westin and St. Regis, over the weekend became the first U.S. hotel operator to gain access to Cuba, a day before the arrival of President Barack Obama. It is the first visit to Cuba by a sitting president in almost 90 years as relations between the two nations thaw. | Starwood, which owns Sheraton, Westin and St. Regis, over the weekend became the first U.S. hotel operator to gain access to Cuba, a day before the arrival of President Barack Obama. It is the first visit to Cuba by a sitting president in almost 90 years as relations between the two nations thaw. |
The revised deal would give Starwood shareholders $21 in cash and 0.80 shares of Marriott International Inc. Class A stock for each Starwood share. Starwood shareholders are also expected to get Interval Leisure Group stock valued at $5.83 per share. Taken together, that would value Starwood stock at $85.36 per share, or about $14.41 billion. | The revised deal would give Starwood shareholders $21 in cash and 0.80 shares of Marriott International Inc. Class A stock for each Starwood share. Starwood shareholders are also expected to get Interval Leisure Group stock valued at $5.83 per share. Taken together, that would value Starwood stock at $85.36 per share, or about $14.41 billion. |
Marriott has more than 4,400 properties in 87 countries and territories, under brands such as Ritz-Carlton, Residence Inn and Marriott. Starwood has nearly 1,300 properties in about 100 countries. | Marriott has more than 4,400 properties in 87 countries and territories, under brands such as Ritz-Carlton, Residence Inn and Marriott. Starwood has nearly 1,300 properties in about 100 countries. |
Just days ago, Anbang put up an offer of $83.83 for each Starwood share, or approximately $14.15 billion. Starwood stockholders would have received $78 in cash for each share they own plus $5.67 in stock for a spinoff of a vacation business. | Just days ago, Anbang put up an offer of $83.83 for each Starwood share, or approximately $14.15 billion. Starwood stockholders would have received $78 in cash for each share they own plus $5.67 in stock for a spinoff of a vacation business. |
Anbang made a dramatic entry into the U.S. two years ago when it bought the famed Waldorf Astoria of York for almost $2 billion. Days before it contested Marriott for control of Starwood, it laid down $6.5 billion to acquire Strategic Hotels & Resorts Inc., which owns several high-end properties including the JW Marriott Essex House in New York and Hotel Del Coronado in San Diego. | Anbang made a dramatic entry into the U.S. two years ago when it bought the famed Waldorf Astoria of York for almost $2 billion. Days before it contested Marriott for control of Starwood, it laid down $6.5 billion to acquire Strategic Hotels & Resorts Inc., which owns several high-end properties including the JW Marriott Essex House in New York and Hotel Del Coronado in San Diego. |
Starwood, based in Stamford, Connecticut, offered a unique opportunity for Marriott because the hotel chain put itself up for sale. Marriott said Monday that it is confident that it can achieve $250 million in annual cost savings within two years of closing on the Starwood transaction. That’s $50 million more than in estimated in November, when it gave its initial offer to Starwood. | Starwood, based in Stamford, Connecticut, offered a unique opportunity for Marriott because the hotel chain put itself up for sale. Marriott said Monday that it is confident that it can achieve $250 million in annual cost savings within two years of closing on the Starwood transaction. That’s $50 million more than in estimated in November, when it gave its initial offer to Starwood. |
Marriott and Starwood still anticipate the deal closing around midyear, assuming it receives the necessary approvals. Anbang, or any other suitor, has until April 8 to top Marriott’s bid. | |
Shares of Starwood gained $3.68, or 4.6 percent, to $84.25 before the market open. Shares of Marriott, based in Bethesda, Maryland, shed 51 cents to $72.65. | Shares of Starwood gained $3.68, or 4.6 percent, to $84.25 before the market open. Shares of Marriott, based in Bethesda, Maryland, shed 51 cents to $72.65. |
Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. | Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. |