|Photo by Freeimages.com/Oden Jaeger|
Marriott International has released an updated statement reaffirming its commitment to acquire Starwood Hotels and Resorts Worldwide, saying that it is confident that the previously announced amended merger agreement is the best course for both companies.
The move comes after Starwood's Board of Directors indicated that a new bid by Anbang Insurance Group is "reasonably likely to lead to a 'Superior Proposal' as defined in Starwood's merger agreement."
Marriott said that the combined company will offer stockholders significant equity upside and greater long-term value driven by a larger global footprint, wider choice of brands for consumers, substantial revenue synergies, and improved economics to owners and franchisees.
On March 26, Starwood notified Marriott that it had received an updated unsolicited proposal from a consortium of potential investors, led by Anbang Insurance Group, which its Board is considering. Marriott said it will monitor this development as it and Starwood continue to work toward the closing of its transaction and the successful integration of the two companies in anticipation of votes by each company's stockholders on April 8. Starwood stated today that its Board of Directors has not changed its recommendation in support of Starwood's merger with Marriott, Marriott said. Marriott also argued that Starwood stockholders should give serious consideration to the question of whether the Anbang-led consortium will be able to close the proposed transaction, with a particular focus on the certainty of the consortium's financing and the timing of any required regulatory approvals.
The new unsolicited proposal by the Anbang consortium follows a March 21, 2016 announcement by Marriott International and Starwood that the companies had signed an amendment to their definitive merger agreement. Under the terms of that amended merger agreement, Starwood shareholders will receive $21.00 in cash and 0.80 shares of Marriott International, Inc. Class A common stock for each share of Starwood Hotels & Resorts Worldwide, Inc. common stock.
Marriott said it will have no additional comment until further developments occur.
Keep visiting www.travelagentcentral.com for further updates on this developing story.