Starwood Hotels' Stock Soars After Receiving New Buyout Bid

Shares of Starwood Hotels & Resorts Worldwide Inc. soared 9.3% in premarket trade Monday, after the hotel operator said it received an unsolicited buyout bid of $76 a share in cash from a consortium of companies. The per-share bid represents a 7.9% premium to Friday's closing price of $70.42. Under terms of the new bid, Starwood shareholders would also receive common stock of Interval Leisure Group valued at $5.50 a share, from the previously announced spinoff of its Vistana Signature Experiences vacation ownership business. Starwood said it still supports the previously announced deal to be acquired by Marriott International Inc. . Under that merger deal, Starwood shareholders would received 0.92 Marriott shares and $2 a share in cash; based on Monday's closing price of $68.89 for Marriott's stock, that bid values Starwood shares at $65.38 each. Marriott's stock was still inactive in premarket trade. Starwood shares have gained 1.7% year to date through Friday, while the S&P 500 has lost 1.1%.