Marriott to buy Starwood Hotels in US$12.2b deal
[BENGALURU] Marriott International Inc will buy Starwood Hotels & Resorts Worldwide Inc in a cash and stock deal valued at US$12.2 billion to create the world's largest hotel chain.
Starwood shareholders will receive 0.92 shares of Marriott Class A common stock and US$2 in cash for each Starwood share held, the companies said on Monday.
The offer translates into US$72.08 per share for Starwood, a discount of about 4 per cent to the stock's Friday close.
Starwood shareholders will also get about US$7.80 per share from the spinoff of its timeshare business and the business's subsequent merger with Interval Leisure Group Inc.
Starwood, the owner of St Regis and Sheraton hotel brands, had indicated in April it was considering strategic options.
The company had reached out to potential bidders InterContinental Hotels Group Plc, Wyndham Worldwide Corp and sovereign wealth funds in July.
Up to Friday's close, Starwood shares had fallen about 14 per cent since April 29, when the company said it was exploring strategic alternatives.
The deal is expected to close in mid-2016, the companies said.
REUTERS
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