NOTICE NO. CA/2015/562/Lo
Starwood Hotels & Resorts Worldwide - Takeover
ISSUE DATE:
17 November 2015
EFFECTIVE DATE:
TBA
CONTRACTS:
Flexible Single Stock Futures
BPF, BPK
Flexible Individual Equity Options
BPT, BPC, BPN
COMPANY:
Starwood Hotels & Resorts Worldwide
CORPORATE ACTION:
Takeover
REFERENCE:
Company Announcement
ISIN:
US85590A4013
DETAILS:
Starwood Hotels & Resorts Worldwide (“Starwood”) has announced that
they have entered into a definitive takeover agreement with Marriott
International Inc. (“Marriott”). Marriott will acquire Starwood for a
combination of 2.00 USD in cash and 0.92 Marriott shares for each
Starwood share held (“the Offer”).
ADJUSTMENTS:
Provided that the Offer becomes effective, the following adjustments will
be made:
■ The contracts shall be adjusted using the ratio method and subsequently
shall be re-designated as contracts based on Marriott International Inc.
Shares. The contracts will be referred to by ICE Futures Europe as
Starwood Hotels & Resorts Worldwide ex-event contracts. The adjustment
ratio shall be calculated using the theoretical value of Starwood Hotels &
Resorts Worldwide shares and the opening price of Marriott International
Inc. on NASDAQ on the business day prior to the effective date as
follows:
𝑇ℎ𝑒𝑜𝑟𝑒𝑡𝑖𝑐𝑎𝑙 𝑉𝑎𝑙𝑢𝑒 =
𝑅𝑎𝑡𝑖𝑜 =
( 2.00 + 0.92 ∗ 𝑀𝑎𝑟𝑟𝑖𝑜𝑡𝑡 𝑜𝑝𝑒𝑛𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒)
1
(𝑇ℎ𝑒𝑜𝑟𝑒𝑡𝑖𝑐𝑎𝑙 𝑉𝑎𝑙𝑢𝑒 − 2.00) ∗ (
𝑇ℎ𝑒𝑜𝑟𝑒𝑡𝑖𝑐𝑎𝑙 𝑉𝑎𝑙𝑢𝑒
1
)
0.92
Subject to OI the following adjustments will be made.
NOTICE NO. CA/2015/562/Lo
Page 2 of 2
Options:
■
Lot Size: The lot size will be divided by the ratio. The adjusted lot
size will be specified in the final notice. The rounding difference
will be neutralized by means of an equalization payment.
■
Exercise Prices: The exercise prices will be multiplied by the
ratio. The adjusted exercise prices will be specified in the final
notice.
■
Outstanding Orders: All outstanding orders for Starwood Hotels
& Resorts Worldwide will be cancelled automatically after the end
of the trading session on the business day before the Effective
Date. The priority of these orders will then be lost. New orders in
Starwood Hotels & Resorts Worldwide can be submitted as from
the Effective Date.
■
Block trading: Members are advised on the business day before
the Effective Date, block trades in contract Starwood Hotels &
Resorts Worldwide may be submitted until 16:30 London time.
Futures:
■
Lot Size: The lot size will be divided by the ratio. The adjusted lot
size will be specified in the final notice.
■
Variation Margin: Daily Settlement Prices for the business day
before the effective date, shall be multiplied by the ratio to
generate reference prices for the purpose of variation margin
calculations at the close of business on the effective date.
This Notice is issued pursuant to the Corporate Actions Policy for ICE Futures Europe. It requires the
immediate attention of Members’ staff involved with the trading and settlement of equity products on
these markets. Members should ensure that clients are made aware of the arrangements detailed in this
Notice.
FOR MORE INFORMATION:
ICE Futures Europe:
ICE Corporate Actions
+44 (0) 20 7382 8205
iceeuropecorporateactions@theice.com
ICE Clear Europe:
Clearing Operations
+44 (0)20 7065 7600
iceuops@theice.com
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