Nov. 16 Premarket Briefing: Marriott to Buy Starwood – TheStreet.com

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Here are 10 things you should know for Monday, Nov. 16:

1. — U.S. stock futures were rising Monday, while European stocks were mixed in choppy trading following the terrorist attacks in Paris on Friday that left at least 129 people dead. Stocks in Paris fell initially on Monday but have pared losses to trade mostly flat.

Asian shares ended Monday’s session mostly lower.

2. — The economic calendar in the U.S. on Monday includes the Empire State Manufacturing Index for November at 8:30 a.m. EST.

3.U.S. stocks fell last week as the market grappled with the idea that interest rates are likely to rise next month.

Stocks snapped a six-week winning streak, with the S&P 500 finishing down 3.6% for the week, the Dow Jones Industrial Average declining 3.7%, and the Nasdaq falling 4.3%.

4. — Marriott International (MARGet Report) said Monday it reached an agreement to buy Starwood Hotels & Resorts (HOT) for $12.2 billion in cash and stock.

The deal would create the world’s largest hotel company. Combined, the companies would operate or franchise more than 5,500 hotels with 1.1 million rooms worldwide, Marriott and Starwood said in a joint press release.

The total consideration to be paid by Marriott totals $12.2 billion consisting of $11.9 billion of Marriott International stock, and $340 million of cash.

Starwood said in April that its board was exploring strategic options for the hotel company.

Marriott shares rose 1% in premarket trading while Starwood declined 0.9%.

5. — The stocks of most travel-related companies were falling Monday following the terror attacks in Paris on Friday.

Carnival (CCL) declined 2.5%, while shares of British Airways parent International Consolidated Airlines (ICAGY)  lost about 3%. In London, travel and tourism operator TUI (TUIVY)  fell 5.6%.

6. — Two bidders remain for General Electric’s (GE)  nearly $5 billion Japanese commercial-lending business, The Wall Street Journal reported, citing a person familiar with the situation.

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Sumitomo Mitsui Financial Group’s leasing arm and Shinsei Bank will both continue discussions with GE to buy the Japanese operation, after submitting binding bids this month, according to the person. The bids valued the GE commercial-lending and leasing operation at nearly $5 billion, the person told the Journal.

GE placed the Japanese business up for sale this year, and several Japanese financial institutions expressed interest, according to the newspaper.

7. — Brent Saunders, CEO of Allergan (AGN) , which is in talks about selling itself to Pfizer (PFE) to form the world’s largest drugmaker, told the Financial Times that any attempt by the Obama administration to block a deal aimed at cutting a company’s tax bill would be a “short-sighted intervention.” 

Pfizer is in negotiations to buy Dublin-based Allergan in what would be the biggest ever “tax inversion” — allowing the company to report much lower tax costs by moving its domicile to Ireland. The move would create a company with a value of more than $330 billion.

“It would be a short-sighted intervention by politicians if they were to intervene,” Saunders told the FT. ” What has to happen is the U.S. has to create a competitive environment for companies that want to compete here on a global scale.”

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