Word: sternlicht
(lookup in dictionary)
(lookup stats)
Dates: during 1997-1997
Sort By: most recent first
(reverse)
Remember the Greek mythological figure Icarus who flew too close to the sun on wings of wax? The modern-day version is Barry Sternlicht, the highflying CEO of Starwood Lodging Trust, which is in a vicious proxy contest this week with Hilton Hotels for control of ITT Corp. By topping Hilton's offer with a $10.2 billion bid for ITT, Sternlicht has thrust himself into what had been a very personal battle between Hilton CEO Stephen Bollenbach and ITT boss Rand Araskog--and thus into the public spotlight. Sternlicht is a Wall Street darling. His stock, including dividends, has soared...
That's not to say Sternlicht has built an empire on a tax loophole, or that his stock would completely deflate. He's a respected hotel owner-operator who has already cut a $1.6 billion deal for Westin Hotels and has franchise agreements with major chains, including Hilton. It's not even clear that Starwood's structure gives him an unfair edge. Bollenbach says it does; Sternlicht says it doesn't. Ken Kies, chief of staff for the congressional Joint Taxation Committee, is concerned enough to be looking, but he says chances of a change anytime soon "are about zero...
...chief concern, as it relates to the battle over ITT, is that the structure seems to generate so much potential tax and other savings that Starwood can afford to outbid all comers. When Sternlicht was snapping up smaller companies, heavyweights like Bollenbach took note but didn't fuss. Now that Sternlicht is going after bigger quarry, he's on Bollenbach's radar, and the fuss has just begun. The Hilton boss has been lobbying against the paired-share structure. By opting to go after a big name like ITT, Sternlicht has created a personal Catch-22. If the scrutiny...