Hyatt Takes on China in Battle for Starwood
Get ready for a showdown. Starwood Hotels & Resort is in advanced talks to merge with fellow hotel conglomerate Hyatt Hotels, which would thwart China's efforts to acquire Starwood in the largest Chinese takeover of a US company to date.
Hyatt and Starwood—which is valued at over $12B—are discussing a possible cash-and-stock transaction, where Hyatt would acquire Starwood and run it under its management. The official deal will likely be announced in two weeks (barring a last-minute Chinese interception). [GS]