Marriott Vacations seen as lead bidder for ILG

[KACTravels]

Marriott Vacations seen as lead bidder for ILG
Marriott Vacations (VAC +2.6%) is in the pole position to acquire ILG (ILG+3.8%), reports Reuters.

Sources say the offer from Marriott Vacations is the best that ILG has on the table

Previously: Reuters: ILG explores merger with Apollo's Diamond Resorts(March 21)

 

[JIMinNC]

Here's the link to the most current rumor. While Reuters is a credible source that only runs vetted and verified stories from reliable sources, until it is officially announced it's still classified as a rumor:

https://uk.reuters.com/article/uk-i...-clinch-merger-with-ilg-sources-idUKKBN1HN1VE

It does sound like things are getting serious though. Given that the market cap of the two companies are very close, it will be interesting to see how the deal is structured if it happens. Assumption had been that Marriott Vacations Worldwide would have been the acquirer, but with ILG actually having a slightly higher market cap, I could see this as more a merger of equals than a pure acquisition.

 

[VacationForever]

Given that the market cap of the two companies are very close, it will be interesting to see how the deal is structured if it happens. Assumption had been that Marriott Vacations Worldwide would have been the acquirer, but with ILG actually having a slightly higher market cap, I could see this as more a merger of equals than a pure acquisition.

That is how I read it too.

 

[controller1]

Here's the link to the most current rumor. While Reuters is a credible source that only runs vetted and verified stories from reliable sources, until it is officially announced it's still classified as a rumor:

https://uk.reuters.com/article/uk-i...-clinch-merger-with-ilg-sources-idUKKBN1HN1VE

It does sound like things are getting serious though. Given that the market cap of the two companies are very close, it will be interesting to see how the deal is structured if it happens. Assumption had been that Marriott Vacations Worldwide would have been the acquirer, but with ILG actually having a slightly higher market cap, I could see this as more a merger of equals than a pure acquisition.

That is how I read it too.

Regardless of how people like to spin it, I can tell you from past experiences, there is always an acquirer and there is rarely a merger of equals.

 

[VacationForever]

Regardless of how people like to spin it, I can tell you from past experiences, there is always an acquirer and there is rarely a merger of equals.

Even when the acquirer's market capitization is lower?

 

[JIMinNC]

Regardless of how people like to spin it, I can tell you from past experiences, there is always an acquirer and there is rarely a merger of equals.

Yes. One of the parties is always more “equal”. In my days working for a big bank holding company, most of our many acquisitions were truly acquisitions where we were the far larger acquirer. The last merger I was involved with in the late 1990s was billed as a merger of equals since both banks were about the same size. But the new board was skewed toward our board members, our CEO was the CEO, and our HQ became the new HQ. We did take the other bank’s name for the new company, since that name was probably the best brand in retail banking, but within a couple of years, our team was in charge because most of the other bank’s management had left. So our “merger of equals” really wasn’t very equal at all.

 

[controller1]

Even when the acquirer's market capitization is lower?

Doesn't matter.

 

[dioxide45]

Here's the link to the most current rumor. While Reuters is a credible source that only runs vetted and verified stories from reliable sources, until it is officially announced it's still classified as a rumor:

https://uk.reuters.com/article/uk-i...-clinch-merger-with-ilg-sources-idUKKBN1HN1VE

It does sound like things are getting serious though. Given that the market cap of the two companies are very close, it will be interesting to see how the deal is structured if it happens. Assumption had been that Marriott Vacations Worldwide would have been the acquirer, but with ILG actually having a slightly higher market cap, I could see this as more a merger of equals than a pure acquisition.

When Starwood spun off Vistana and then it merged with ILG, Vistana was the smaller company. This was how it allowed the transaction to be tax free. It really doesn't matter who acquires who. What will matter in the end is which companies management structure stays most in tact and who remains as the CEO of the combined corporation. That will probably lead more to the general direction the company takes.