Marriott Vacations Worldwide Corp will buy time-share operator ILG Inc for US$4.7 billion, grabbing the chance to merge operations and brands spun out of Starwood and Marriott hotels, reported Bloomberg.
ILG has been facing activist pressure since last year to merge with a competitor. Last May, FrontFour Capital disclosed a 2% position in Miami-based ILG and simultaneously urged it to combine with Marriott Vacations. The firm in January nominated four directors to ILG’s board ahead of its annual meeting in May.
In February, in a public letter, the activist again urged the board to engage in good faith discussions with Marriott Vacations. FrontFour said that refusal to “entertain such a compelling transaction” would “call into question the existing board’s ability to satisfy its fiduciary duties.”
Full Content: Bloomberg
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