Daily Management Review

Merger Deal Revisited


04/28/2016


Starwood Hotels reconsider Marriott’s revised bid.



Starwood Hotels & Resorts is ready for Marriott International’s revised bid at “$79.53 per share or $13.6bn”. The said deal overshadows the “$13.2bn” offer of Chinese consortium led by Anbang Insurance Group.
 
The shareholders of “$21 in cash and 0.80 shares of Marriott International for each Starwood share” as decided under the “amended merger agreement” terms. Moreover, the investors will also be entitled to thirty four percent of the combined company's common stock” once the merger agreement process is completed.
 
Additionally, the investors of Starwood will also be given “separate consideration in the form of Interval Leisure Group common stock from the spinoff of the Starwood timeshare business and subsequent merger with ILG”.
 
Marriott is confident on delivering “$250m in annual cost synergies” within a span of two years. A statement issued by the company informs:
“This revised agreement offers superior value for Starwood's shareholders, the ability to close quickly, and provides value creation potential that will allow both sets of shareholders to benefit from improved financial performance”.
 
Moreover, the company also added that all the necessary “important regulatory consents” were “already obtained”, whereby the transaction ought to go smoothly. The Chairman in the Starwood Hotels & Resorts Worldwide’s Board of Directors, Bruce Duncan, said:
"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.
"Throughout this process, our board of directors has remained laser-focused on maximising value for Starwood shareholders, and Marriott's revised offer provides the highest value to our shareholders through long-term upside potential from shared synergies and ownership in one of the world's most respected companies, as well as significant upfront cash consideration.”
 
As per Marriott’s expectation, the transaction amount will be more or less neutralised by the year of 2017 and 2018 “to adjusted earnings per share”.



References:
http://www.digitallook.com/
 







Science & Technology

Just $24 Earned By Hackers From The Huge Cryptojacking Campaign Conducted Last Week

New Molecule That Quickly Fights Cancer Cells Identified By Swedish Scientists

The U.K.’s Health Sector To Integrate Israeli ‘Digital Health’ Technology

Cryptocurrency Mining Malware Infects Government Websites In Multiple Countries All Across The World

New Research Into Space Settlement And Space Habitation Will Be Supported By Seed Grants Launched By UAE

NASA Confirms Mystery Satellite To Be Its IMAGE Satellite

Facebook To Put A Ban On Cryptocurrencies Ads

Study Show An Early Sign For Alzheimer's Is Sleep Disruption

Malicious ads on YouTube were used to mine cryptocurrency with viewers’ CPU

American authorities spoke out against electronic cigarettes iQOS

World Politics

World & Politics

South African President Zuma Finally Resigns, New President To Be Elected Soon

13 countries with the best healthcare system

France is coming closer to Iran

India-Russia Develops Supersonic Missile Which Could Raise Concerns In China

Yet another serious political risk for Europe: Italian elections coming soon

Seven Weeks Time Period , Says Theresa May, For Agreement On Brexit Transition Deal

Germany on the brink of political chaos

Trump Administration Consents To Collaborate With Congress On The Matter Of Democrats’ Memo Release