Marriott International Increases Its Bid for Starwood Hotels & Resorts (HOT)
Shares of Starwood Hotels & Resorts Worldwide Inc. were trading up +2.63 or +3.26 percent to $83.20 per share in this morning’s premarket after news broke early this morning that Marriott International Inc. (MAR) was upping its bid for Starwood after the company received a competing bid for $13.1 billion on March 19th. Starwood Hotels & Resorts stock closed at $80.57, up +4.18 or +5.47 percent in Friday’s regular trading session.
Stamford, Connecticut based Starwood Hotels and Resorts is one of the world’s largest hotel companies.
Founded in 1927 as a root beer stand by John and Alice Marriott, Bethesda, Maryland based Marriott International Inc. is a diversified hospitality company which operates a wide range of hotels and lodging facilities. The company owns over 4,300 properties in 85 countries. Marriott International operates and franchises hotels under 19 brands including Bvlgari, The Ritz-Carlton, JW Marriott, Autograph Collection Hotels, Marriott Hotels and Renaissance Hotels to name only a few.
The Anbang consortium bid for Starwood Hotels was announced over the weekend. The consortium’s all cash bid was considerably higher than the original $68.06 per share or $11.5 billion Marriott International originally bid for the company in November of last year. The consortium’s bid for Starwood was for $78 in cash or $13.16 billion, beating Marriott’s original bid by about 15 percent.
Early this morning, Marriott International responded with a revised offer of $79.53 per share or approximately $13.6 billion in cash and stock. Marriott had originally offered 0.92 shares of Marriott Class A common stock along with $2.00 per share for each Starwood share, leaving Starwood shareholders with about 37 percent of the combined company.
This morning’s offer includes $21 per share in cash with a reduced stock package of 0.8 shares of Marriott International stock for every Starwood share. The revised bid won the approval of the Starwood board of directors.
Bruce W. Duncan, Starwood’s Chairman said in a statement that, “We are pleased that Marriott has recognized the value that Starwood brings to this merger and enhanced the consideration being paid to Starwood shareholders. We continue to be excited about the combination of Starwood and Marriott, which will create the world’s largest hotel company with an unparalleled platform for global growth in the upscale segment.”
Marriott now expects the combined companies will generate $250 million in annual savings within two years of the deal’s completion. Marriott’s original deal estimated about $200 million in savings within two years of closing.
Other News About HOT
Starwood gets $13 billion bid from Anbang, tops Marriott offer
News article about Anbang’s bid for Starwood that appeared on Saturday.
Starwood strikes deal with Cuba
Starwood announced it will manage three hotels in Cuba on the eve of President Obama’s visit to the island.
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