Friday 24 November 2017

Sheraton-owner Starwood accepts higher $13.6bn offer from Marriott

Westin is just one of many brands owned by Starwood Hotels
Westin is just one of many brands owned by Starwood Hotels

Marriott International Inc said it made a higher offer for Starwood Hotels and Resorts Worldwide Inc that was accepted by the owner of the Sheraton and Westin hotel brands.

The new stock-and-cash offer is worth $79.53 per share, or $13.6 billion, and tops an all-cash $78 per share, or $13.16 billion, offer from a group led by China's Anbang Insurance Group Co.

The Marriott-Starwood deal will create the world's largest hotel chain with top brands including Sheraton, Ritz Carlton and the Autograph Collection. Marriott in November offered $12.2 billion, or $72.08 per, for Starwood.

Starwood shareholders will receive $21.00 in cash and 0.80 shares of Marriott Class A common stock for each share of Starwood common stock, Marriott said.

Starwood shares were trading at $82.72 before the opening bell. Marriott was slightly down at $72.00.

Under the revised agreement, Starwood will pay a breakup fee of $450 million, up from $400 million previously.

Starwood Chairman Bruce Duncan said the company was pleased that Marriott has "recognized the value" that Starwood brings to this merger.


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