Bacai

http://www.cnbc.com/2016/03/14/starw...6-a-share.html

threatening the deal with Marriott.

seawolf

Unsolicited offer announced by SPG.

http://www.starwoodhotels.com/corporate/about/investor/news.html

Interesting thing is why Marriott would provide a waiver for SPG to even explore this. I recall seeing a no shop provision in the Marriott merger agreement (and a breakup fee).

CPRich

Being discussed in detail in the Sale of Starwood thread. With the same comments by the same members....

m.photog

http://www.travelandleisure.com/articles/starwood-marriott-merger-may-fall-apart?utm_campaign=trueAnthem:+Trending+Content&ut m_content=56e6f89f04d30148e40efab5&utm_medium=true Anthem&utm_source=twitter

Found this just now.

DJ_Iceman

I just read the thread over in the Starwood forum. I draw two conclusions:

- Marriott stands to get a $400M payout if the deal falls through, which isn't too shabby for not really doing much of anything.
- If the average Starwood guest is anything like some of the pompous, inflammatory folks on the Starwood forum, I'll be glad the deal falls through so they won't be staying in the same hotels as me.

SkiAdcock

Well if the Marriott deal does go through, it's going to be interesting when the SPG folk come to Marriott forum & complain. Gawd knows they're doing it enough on their own forum.

Plus besides the FTers, it will be interesting to see how the mods styles mesh. Ours is much more laid back (IMO). But both sides will be kept busy (although I think their side more because our forum is also more laidback in general).

Cheers.

GetawaysRus

Interesting news.

That Starwood thread is enormous. Today's news begins on page 132.

Gary (View From the Wing) had a blog post earlier today that covered the financials. After reading that, it seems that the dollar value of the deal (the dollars per share that would go to Starwood shareholders) with the Chinese group is far greater than the deal with Marriott.

So I think the Marriott deal may be dead. Starwood will have to pay that $400 million penalty to back out. If Starwood sticks with the Marriott deal, a bunch of lawyers will file a class action lawsuit for way more than $400 million and allege that Starwood shortchanged its shareholders by accepting Marriott's lower price.

I'm loyal to both Marriott and SPG. I had stopped spending on my AmEx SPG card after the merger announcement because I wasn't sure what would become of those SPG points, but I think I'm going to resume using the SPG credit card. I would also suspect that this may be good news for American Express if it is able to hold on to the SPG AmEx.

SkiAdcock

Guess you didn't read some of the various investment banks thoughts on the alternate bid & what it means to Marriott/SPG. I wouldn't say the Chinese deal is a done deal. Not saying it isn't, but think your scenario isn't 100% - especially based on a blogger's thoughts (I know Gary btw - not a diss against him, but in general).

Cheers.

RogerD408

I see some of the difference due to MR abandoning FT (not to mention it's members) so of course there will be more on FT from the SPG members. I'll bet if you merged what Marriott Insiders has it will level out.

SkiAdcock

Nah, SPG has always been more active than Marriott. But Marriott FTers don't kvetch as much as SPG members from what I can tell. And the mods on that side aren't as laidback as Bruce is (a general observation, not specific criticism).

I figure if the Marriott/SPG merger goes through it will be more like UA/CO in terms of elites & the sniping & then a year or so later will settle down. (FWIW - I don't envy the mods on either side if the M/S merger happens. They're definitely going to be busy!).

Cheers.

bmr12

I guess it was premature to get an SPG Amex in hopes of boosting my MR lifetime points balance....

jspira

I think it's important to point out three things about Anbang, the potential acquirer:

1.) It just acquired Strategic Hotels (which owns 18 luxury properties including a bunch I've stayed at, a few RCs, a few FS', the IC in Chicago, etc.
2.) Anbang acquired Strategic just months after Blackstone acquired Strategic
3.) Anbang bought the Waldorf Astoria some two years ago

And an interesting footnote: last summer, Bill Gates tried to acquire Strategic.

I suspect Anbang knows what it's doing.

Above from:
Merger Interruptus: Chinese Consortium Outbids Marriott for Starwood


(The above appeared in FBT, where i serve as Ed.Dir.)

DCF

I think that - possibly foolishly - all of us Starwood Platinums are thinking "it's got to be better than Marriott!"

rasheed

I expect if the alternative deal is better as reported, I think this is good news for SPG folks and for consumers keeping competition going.

I don't know of any MR folks who were thinking the deal was going to be really beneficial.

Will Marriott raise its offer or just take the breakup fee? I don't know, but I don't think Marriott can close on its existing offer without lots of lawsuits. I think this is why they allowed the discussion.

I do think it would be a bidding war if Marriott did push, but it might be a now or never feeling for the Marriott team to make this happen. Unless, the global economy has more issues and Marriott can buy a few years later at a discount. Clearly, the industry is thinking that won't happen.

Rasheed

hhoope01

A somewhat harsh description. When anything occurs that disrupts the status quo, there will almost always be conflict (and hyperbole statements is not uncommon in these situations). So I tend to give them a bit of slack in their venting.

It will be interesting to see how Marriott reacts. Don't forget, Marriott initially passed on bidding at all. They only came back later after it looked like no one else would and they could make a fairly low offer. So it could be that they will just take their $400 million and run.