Starwood Accepts Revised Marriott Offer

Mukesh Buch
21 Mar, 2016
New York City

IHS profit surged and agreed to acquire U.K.-focused Markit Ltd. Marriott Intl agreed to acquire Starwood Hotels after revising the offer to $79.53 per share. Sherwin-Williams agreed to buy Valspar for $9.3 billion.

[R]1:10 PM New York – IHS profit surged and agreed to acquire U.K.-focused Markit Ltd. Marriott Intl agreed to acquire Starwood Hotels after revising the offer to $79.53 per share. Sherwin-Williams agreed to buy Valspar for $9.3 billion.[/R]

Tollbooth Index slid 10.16 to 10,658.48.

Earnings Review

Affymetrix, Inc ((AFFX)) plunged 9.8% or $1.56 to $14.43 after the former executive said he had submitted a proposal to acquire the molecular diagnostic products maker for $16.10 per share in cash valued at about $1.5 billion.

IHS Inc ((IHS)) surged 6.7% or $7.43 to $118.14 after the professional analytical data provider reported revenues in the first-quarter ending on February 27 jumped 7% from a year ago to $548.4 million.

Net income in the quarter soared 14% to $45 million or 66 cents per diluted share compared to $39.5 million or 57 cents per share from the same quarter last year.

IHS forecasted revenues in the fiscal year ending November 2016 in the range of $2.30 billion to $2.38 billion and operating profit between $770 million and $800 million while diluted earnings per share in the range of $6 to $6.30.

Separately today, the company agreed to acquire the U.K.-focused financial information services provider Markit Ltd.

The transaction was unanimously approved by the Board of Directors of both companies and the transaction is expected to close in the second-half of 2016.

Markit Ltd, shares in Nasdaq trading jumped 10.4% to $32.55.

Marriott International, Inc ((MAR)) slipped 1.2% or 89 cents to $72.27 after the hotel operator agreed to acquire Starwood Hotels & Resorts Worldwide, Inc for about $79.53 per share or $13.6 billion in cash and stock to create the world's largest hotel company.

Under the revised terms, shareholders of Starwood will receive $21 in cash and 0.80 shares. The offer would be more than the all-cash offer from China's Anbang Insurance Group Co for $78 a share or $13.16 billion.

The transaction is expected to close in the second-half of this year.

Peabody Energy Corporation ((BTU)) declined 8% or 20 cents to $2.30 after the coal producer shares in the last year tumbled 61.83% but advanced 22.6% in the last four weeks.

Sherwin-Williams Co ((SHW)) slumped 4.9% or $14.02 to $274.67 after the paint and coatings company agreed to acquire rival paint company Valspar Corporation in an all-cash for about $9.3 billion.

The transaction is expected to close by the end of first-quarter 2017.