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Six Continents Woos Starwood but Deal Is Far From Sealed

NEW YORK CITY-An industry source confirms that the lodging behemoths have been in sporadic merger talks for several months and that negotiations intensified last month. But the deal is far from done and the list of major obstacles to be overcome could very well scuttle the plan in the end.

By Maria Wood | Updated on December 04, 2001

NEW YORK CITY-Although both companies deny it, an industry source confirms that Six Continents Plc is indeed in ongoing talks to acquire Starwood Hotels & Resorts Worldwide.

Reports in Britain’s Sunday Telegraph surfaced over the weekend saying that London-based Six Continents, formerly Bass Hotels & Resorts, was readying a $7.6-billion bid for Starwood, a White Plains, NY-based hotel company with roughly 700 properties. It also owns the Sheraton and Westin brands. With some 3,200 hotels worldwide, Six Continents controls the Holiday Inn, Crowne Plaza and Inter-Continental franchises. Spokespersons for both Six Continents and Starwood declined to comment on what they termed rumors and speculation.

However, an industry source tells GlobeSt.com that the two companies have been in sporadic merger talks since last summer. In October, discussions heated up again. Yet the source states that the report in the London paper “was way ahead of the status of the transaction. The discussions have not reached the advanced stage, and may or may not get there.”

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