A lawsuit was filed for shareholders in shares of Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) in connection with the proposed takeover was announced and NYSE:HOT stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 12/21/2015 -- A shareholder who currently holds shares of Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT), filed a lawsuit in effort to halt the proposed takeover of Starwood Hotels & Resorts Worldwide Inc. by Marriott International, Inc.
On November 16, 2015, Marriott International, Inc. and Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced that the boards of directors of both companies have approved a merger agreement.
Investors who purchased shares of Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) and currently hold any of those NYSE:HOT shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:HOT stockholders by agreeing to sell Starwood Hotels & Resorts Worldwide Inc too cheaply via an unfair process to Marriott International, Inc.
Under the terms of the agreement, at closing, Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) shareholders will receive 0.92 shares of Marriott International, Inc. Class A common stock and $2.00 in cash for each share of Starwood common stock. Based on Marriott's 20-day VWAP ending November 13, 2015, the merger transaction has a current value of $72.08 per Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) share, including the $2 cash per share consideration.
However, the plaintiff claims that the proposed consideration NYSE:HOT shareholders will receive is grossly inadequate and undervalues Starwood Hotels & Resorts Worldwide Inc. Indeed, at least one analyst has set the high target price for NYSE:HOT shares at $93.00 per share and NYSE:HOT traded prior to the takeover announcement as high as $82.83 per share as recently as October 28, 2015, respectively as high as $86.61 per share in May 2015. In addition, the plaintiff alleges that the process is also unfair to NYSE:HOT stockholders
On December 18, 2015, NYSE:HOT shares closed at $66.08 per share.
Those who are current investors in Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) shares have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com