December 01, 2015 (Shareholders Foundation) - An investor who currently holds shares of Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT), filed a lawsuit in effort to halt the proposed takeover of Starwood Hotels & Resorts Worldwide Inc. by Marriott International, Inc.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NYSE:HOT stockholders by agreeing to sell Starwood Hotels & Resorts Worldwide Inc too cheaply via an unfair process to Marriott International, Inc

On November 16, 2015, Marriott International, Inc. (NASDAQ: MAR) and Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced that the boards of directors of both companies have approved a merger agreement. Under the terms of the agreement, at closing, Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) shareholders will receive 0.92 shares of Marriott International, Inc. Class A common stock and $2.00 in cash for each share of Starwood common stock. Based on Marriott’s 20-day VWAP ending November 13, 2015, the merger transaction has a current value of $72.08 per Starwood Hotels & Resorts Worldwide Inc (NYSE:HOT) share, including the $2 cash per share consideration.

However, the plaintiff claims that the proposed consideration NYSE:HOT shareholders will receive is grossly inadequate and undervalues Starwood Hotels & Resorts Worldwide Inc. Indeed, at least one analyst has set the high target price for NYSE:HOT shares at $93.00 per share and NYSE:HOT traded prior to the takeover announcement as high as $82.83 per share as recently as October 28, 2015, respectively as high as $86.61 per share in May 2015. In addition, the plaintiff alleges that the process is also unfair to NYSE:HOT stockholders