Marriott Seals $12.2 Billion Merger Deal With Starwood

Marriott International Inc. will pay $12.2 billion to acquire Starwood Hotels & Resorts Worldwide Inc. , the hotel operators said Monday. Boards of both companies have unanimously approved an agreement for a merger, which will create the world's largest hotel company, Marriott said in a statement. The combined company will have 5,500 hotels with 1.1 million rooms in total, in more than 100 countries, it noted. Marriott will pay $11.9 billion in stock and $340 million in cash under the deal. Starwood shareholders will receive 0.92 shares of Marriott Class A common stock and $2.00 in cash for each fully diluted share as of Sept. 30. The transaction values each Starwood share at $72.08, including the $2 cash per share. Shares in Starwood rose 4% in premarket action, while Marriott was inactive at last check.