MONDAY: In PREMARKET TRADING, shares of Starwood Hotels & Resorts Worldwide Inc. experienced a hike of 9.3% after when hotel operator claimed to have had received an uninvited buyout bid worth US$ 46/share in cash from a consortium of companies on 10 March 2016 – anequivalentto approx. 7.9% finest to Friday’s CLOSING PRICE of US$ 70.42. The deal is proposed to acquire all of the outstanding shares of common stock. This new standardized bid would give Starwoods’ shareholders a common stock of Interval Leisure Group worthUS$ 5.50/share, from the previously announced spinoff of its Vistana Signature Experiences vacation ownership business.
On a similar note, Starwoods gives full consideration to a previously proposed deal on 16 November 2015, i.e. a merger with Marriot International Inc in order to create the world’s largest hotel company. Keeping in regard to that, Starwood shareholders would be getting 0.92 of Marriot shares and US$ 2/share in cash; based on Monday’s CLOSING PRICE of US$ 68.89 for Marriott’s stock – that bid equals at US$ 65.38/share of Starwoods. Marriott is confident that the previously announced merger agreement is in good books for both the companies. Hence it has scheduled a stockholders meeting on 28 March 2016 for accomplishing the merger.
Lazard and Citigroup Global Markets Inc. are serving as financial advisors while Cravath, Swaine & Moore LLP is serving as legal counsel to Starwood Hotels & Resorts Worldwide Inc.
However, the Consortium has not completed persistence and there’re several matters to be resolved while taking in view the bid.
UPDATE: Starwood has received a waiver from Marriott enabling it to engage in discussions with, and provide diligence information to, the Consortium in connection with its proposal. The Marriott waiver expires at 11:59 PMEST on 17 March 2016 (As per official press release).
Upon details issuance of the bid, Starwoods withholds its comments till the waiver period expires.
Exclusive from Market Watch: Marriott’s stock citedinertness in PREMARKET TRADE. Meanwhile Starwood shares gained 1.7% year to date through Friday, while the S&P 500 has lost 1.1%.