If you thought Starwood’s merger with Marriott was a done deal, think again. They have just confirmed that they have indeed received a new bid from a consortium of investors who have offered $76 cash per outstanding common stock share of Starwood Hotels.
If this goes through, the stockholders would additionally get consideration from Interval Leisure Group, which spun off its vacation ownership business. Starwood currently received a waiver from Marriott to discuss this new unsolicited offer, and discussions are underway right now to see if there is anything that could happen on this proposal.
As per current reports, the Marriott deal is supposed to get about $63.74 per share for Starwood shareholders, largely in Marriott stock and only $2 in cash. Here, the offer is much more lucrative.
The Board of Directors of Starwood has currently not changed their recommendation, but lets see how this goes forward.
Clearly, this will keep everyone’s favourite Starwood hotels and Starwood Preferred Guest program outside the clutches of Marriott.
Readers, what are your views on this proposal?