Marriott buys Starwood in $12.2 billion deal
Family-run hotel giant Marriott International revealed this week that it has agreed to buy Starwood Hotels & Resorts in a $12.2 billion cash and shares deal.
The acquisition will make Marriott International the largest hotel chain in the world, with access to more than a million rooms. It will also bring together 30 brands across all lodging segments, including Starwood’s higher-end W Hotels and Marriott’s Courtyard.
According to the Wall Street Journal, Starwood had been listening to sales offers for months and a number of global players had considered a bid for the Connecticut-based hospitality giant.
Starwood shareholders will receive 0.92 shares of Marriott Class A common stock and $2 in cash for each Starwood share held, the companies said.
After the transaction closes, the second-generation family business is expected to add three Starwood members to its board, which will expand to 14 members. The hotel chain posted revenues of $13.7 billion in 2014.
Bombardier sells 30% train unit stake to relieve financing pressure
Third generation Canadian transporter Bombardier is to sell a 30% stake in its rail business to a Quebec pension fund for $1.5 billion as it seeks to boost financing following a poor performance in 2014.
The third generation family business, which is chaired by family member Pierre Beaudoin, agreed to the sale to Caisse de dépôt et placement du Québec (CDPQ) - Canada’s second-largest pension fund.
Last month Bombardier secured a $1 billion lifeline from the Quebec government for Bombardier’s CSeries commercial jet programme.
The company had EBITDA of negative $1.2 billion for the fourth quarter of 2014, compared to $185 million for the same period in the previous fiscal year. The company’s full year 2014 revenues sat at $20.1 billion, up from $18.2 billion in 2013.
Bombardier was founded in 1942 by Joseph-Armand Bombardier.
Lotte Group founder launches fresh lawsuits in succession wrangle
Lotte Group founder Shin Kyuk-ho has filed law suits against seven CEOs of subsidiaries of the South Korean conglomerate he established.
The law firm who filed the charges said that they are charged with work obstruction. The seven CEOs have allegedly refused to report to Shin since 20 October and are accused of backing the younger of Kyuk-ho’s two sons in a long-running succession power struggle.
It is the latest legal effort in the battle between the founder’s two sons, Dong-joo and Dong-bin, who own comparable stakes in the company, and are vying for control of the 90 trillion won ($77 billion) business.
In October Shin Dong-joo, the eldest son of Kyuk-ho, launched legal proceedings against his younger brother in a bid to reclaim control of the South Korean conglomerate.