Marriot Bids $85.36 for Starwood

It appears the zealots at Marriot have outbid Anbang for the takeover of Starwood. Let’s see if the Chinese step up and bid higher.

This is all very, very boring.

Via Briefing.com

Under the terms of the 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. Excluding its timeshare business, the transaction values Starwood at ~$13.6 bln ($79.53 per share), consisting of $10.0 bln of Marriott International stock, based on the closing price of $73.16 on March 18, 2016, and $3.6 bln of cash, based on approximately 170 mln outstanding Starwood shares. Starwood shareholders will own approximately 34 percent of the combined company’s common stock after completion of the merger, based on current shares outstanding.

In addition, Starwood stockholders are expected to receive separate consideration in the form of Interval Leisure Group (IILG) common stock from the spin-off of the Starwood timeshare business and subsequent merger with ILG, currently valued at $5.83 per Starwood share, based on ILG’s share price as of market close on March 18, 2016.

Both companies continue to expect the closing of this transaction will occur well before the planned date of the Marriott-Starwood merger closing. The amended agreement and the ILG transaction have a combined current value of $85.36 per share of Starwood common stock. As a result of extensive due diligence and joint integration planning, Marriott is confident it can achieve $250 mln in annual cost synergies within two years after closing, up from $200 mln estimated in November 2015 when announcing the original merger agreement. 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.

Who the fuck bids $85.36 anyway? What did they calculate that price in a psyche ward somewhere, to the exact penny? Psychopaths.