STARWOOD MAKING ROOM FOR ITT HOTELS IN $13.3 BILLION DEAL; MERGER BID WOULD TRUMP OFFER BY HILTON.Byline: John Hendren Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. ITT ITT Initial Teacher Training (UK) ITT I Think That ITT Invitation To Tender ITT Individual Time Trial (professional cycling) ITT Intention-To-Treat ITT In This Thread (forums) Corp. accepted a $13.3 billion buyout offer from Starwood Lodging on Monday, spurning a lower hostile bid from Hilton Hotels
The combination of ITT and Starwood would create the world's largest hotelier, bringing some 650 Sheraton, Westin and Caesar's hotels and casinos in 70 countries under the control of one corporation with $10 billion in annual revenues. Phoenix-based Starwood, the nation's largest real estate investment trust, agreed to buy the Westin hotel brand last month. Its offer of $82 a share in cash and stock for ITT, including $15 a share in cash, dwarfs Hilton's $11.1 billion, or $70-a-share, cash and stock offer. Hilton did not immediately respond to news of the Starwood deal, so it was not known whether it would try to top Starwood's offer. The company, based in Beverly Hills Beverly Hills, city (1990 pop. 31,971), Los Angeles co., S Calif., completely surrounded by the city of Los Angeles; inc. 1914. The largely residential city is home to many motion-picture and television personalities. , did not return calls seeking comment. Critics had urged ITT's chairman and chief executive, Rand Araskog Rand Vincent Araskog (born Octoder 31, 1931) is a prominent U.S. businessman and an ex-CEO of ITT Corporation. Araskog is of Scandinavian origin; his grandfather arrived to Minnesota from Sweden. , to work with Hilton for a higher bid. ``The ITT-Hilton matter was not proceeding to Mr. Araskog's satisfaction, and this was a way he was able to control the destiny of ITT,'' said Bjorn Hanson, who heads the lodging and gaming unit at the Coopers & Lybrand accounting firm. ``With all of the criticism of Araskog acting like entrenched en·trench also in·trench v. en·trenched, en·trench·ing, en·trench·es v.tr. 1. To provide with a trench, especially for the purpose of fortifying or defending. 2. management, the end result is he delivered for his shareholders.'' A Starwood spokesman said the companies haven't agreed on a name. Starwood already had announced plans to change its name to Westin Hotels Westin Hotels & Resorts are an upscale hotel chain owned by Starwood Hotels & Resorts Worldwide. As of 2005 Westin operated over 120 hotels in 24 countries. History In 1930, hotel owners Severt W. & Resorts Worldwide. Starwood and ITT said they expect to save about $100 million a year from sharing technology and reservation systems and by purchasing services and promoting each other's hotels as well as through other efficiencies arising from the merger. The deal is expected to close in the first quarter of 1998, subject to approval from shareholders, gaming regulators and antitrust officials. Starwood's Barry S Barry, Welsh Barri, town (1991 pop. 45,053) and port, Vale of Glamorgan, S Wales, on the Bristol Channel. Once a major coal-exporting port, its more diversified export products include cement, flour, and steel products. . Sternlicht will continue as chairman and chief executive of the combined companies. Sternlicht said Starwood intends to retain ``a significant number of ITT senior executives'' after the deal is completed. Araskog is expected to be named as one of four ITT representatives on the Starwood board. ITT owns Sheraton, which owns, manages and franchises 424 hotels in 62 countries; Caesars, a leader in the gaming industry; and ITT World Directories. CAPTION(S): Photo Photo: Barry S. Sternlicht To head Starwood-ITT entity |
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