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+--- Thread: MARRIOT AQUIRES STARWOOD (/thread-88.html)
MARRIOT AQUIRES STARWOOD - TEAM HARLFORUM - 01-17-2016
The proposed deal, which would create the world’s largest hotel company, has generated an enormous amount of examination and commentary relative to many issues relating to the transaction. I am intrigued that the majority of what I have read presumes the merger to be a done deal. While I do not profess to be an M&A expert, it appears to me that final consummation of this proposed transaction is far from certain.
- The deal is expected to close during mid-2016. Seven months is a long time and a tremendous amount of change, good and/or bad, can occur. The proposed transaction could very well derail between now and then.
- While the boards of both entities have unanimously approved the deal terms and conditions, final consummation of the transaction will require shareholder approval from both companies.
- Regulatory and antitrust concerns need to be ironed out not just in the U.S., but also in Europe and China with no assurance of green lights to proceed.
- Many public markets analysts have suggested that Marriott's offer price is not as high as investors expected. While the deal reportedly includes “no shop” clauses, the notion of a competing higher bid from another suitor during the next several months is not far-fetched.