Bloomberg: No Way for Marriott to Make Starwood Work Unless They Sell Property, Starwood CEO – We’re on a Wild Ride

Bloomberg has a few interesting quotes in their latest coverage of the on-going Marriott / Starwood merger saga. Would Marriott need to sell real estate in order to upstage Anbang’s offer? Would investors sacrifice upside for a guaranteed merger close? Meanwhile, Starwood’s CEO told employees in a message to prepare for a wild ride as they await the outcome together. Check out the full read here.

“I don’t think there is a better way to make this work, unless Marriott arranged the concurrent sale of the real estate for a very high price,” David Loeb, an analyst at Robert W. Baird & Co., said in an e-mail. “That is possible but not easy.”

If Marriott does raise its bid again, “investors will be faced with a choice of sacrificing additional upside for certainty of closing and the opportunity to participate in upside of the combined entity,” wrote Agnew of MKM Partners. “Anbang’s offer needs to be at least $4 to $5 over Marriott’s to be deemed superior, given the timing and participation advantages Marriott has.”

“There’s no question we’re on a wild ride,” Starwood CEO Tom Mangas said in a message to workers, disclosed in a Securities and Exchange Commission filing Monday. “We’re all going to have to be resilient and await the outcome together.”

SPG

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