Marriott International reached an amended agreement to acquire Starwood Hotels & Resorts after boosting its bid to $13.6 billion, which is 10% higher than the agreement the two companies reached in November and about 2% more than a competing bid that Anbang Insurance Group made last week.
Marriott and Starwood said Monday that Marriott would pay $79.53 a share for Starwood to create by far the world’s largest hotel company. Additionally, Marriott’s offer includes $20 per Starwood share in cash, up from $2 per share in cash in November.
Marriott also said Monday that the combined company will be able to reduce annual costs by $250 million a year within two years. Marriott previously estimated annual cost savings at $200 million.
Starwood’s termination fee for ending an agreement with Marriott has been increased to $450 million from $400 million. Both companies have agreed to convene stockholders meetings on March 28 to vote on the amended agreement.
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