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Stockholders Approve of Starwood Merger with Marriott

Starwood's St. Regis New York hotel
Starwood's famous St. Regis NY hotel (photo/Starwood)

BETHESDA, Md. And STAMFORD, Ct.—At separate meetings on Friday, stockholders of both Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) and Marriott International, Inc. (NASDAQ:MAR) agreed to a revised proposal of a Starwood merger with Marriott. Giant Chinese firm Anbang Insurance Group had earlier pulled out of the bidding war.

"There is no doubt that this transaction puts our company on the best path forward," stated Thomas B. Mangas, Starwood's chief executive officer about Friday's vote.

Arne Sorenson, Marriott's president and chief executive officer, said: "With today's successful stockholder approval milestone, we are that much closer to completing our transaction. Our teams continue to plan the integration of our two companies, and we are committed to a timely and smooth transition."

Both firms have been cleared in the United States and Canada by a pre-merger antitrust review. The companies anticipate that the merger should close mid-2016, pending completion of Starwood's planned divestiture of its timeshare business expected on or around April 30, 2016. However, the merger of the two powerful hotel brands, with Marriott's 4,400 flagged properties and Starwood's 1,300, still needs to obtain regulatory approvals in the European Union and China.

Starwood stockholders anticipate receiving 0.8 shares of Marriott common stock plus $21.00 in cash for each of their shares of Starwood common stock from the merger.

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