WHITE PLAINS, N.Y.—(BUSINESS WIRE)—Oct. 30, 2003—Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) announced today that it expects to launch its tender offer for all of the outstanding units of limited partnership (the “Units”) of Westin Hotels Limited Partnership (“WHLP”), the owner of the Westin Michigan Avenue in Chicago, Illinois, next week at an increased purchase price of $625 in cash per Unit, rather than $600 as previously announced.
In connection with the tender offer, Starwood intends to solicit the consent of WHLP`s limited partners to proposals that would facilitate Starwood`s purchase of 100% of the Units. These include proposals to amend WHLP`s partnership agreement to, among other things, render certain transfer restrictions inapplicable to Starwood`s tender offer, to certain types of similar tender offers, and to mergers that follow those tender offers. Starwood is also seeking the consent of the limited partners to effect a merger, following its tender offer, of WHLP with or into an affiliate of Starwood for the same $625 purchase price.
An unsolicited tender offer by Kalmia Investors, LLC for approximately 54% of the Units at a purchase price of $550 per Unit is currently pending and is currently scheduled to expire at 5:00 p.m., Eastern time, on Friday, November 7, 2003. The offer price in Starwood`s tender offer, when launched, will be $75 more per Unit than the price Kalmia is offering, which represents a 14% premium. Starwood`s offer will be for 100% of the Units, while Kalmia is offering to purchase only 54% of the Units, which may mean that each Unitholder will only be able to tender 54% of its Units in the Kalmia tender offer. In addition, Kalmia is not seeking consents to render any of the transfer restrictions contained in WHLP`s partnership agreement inapplicable to its offer, which may mean that Kalmia`s purchase of Units pursuant to its offer may be delayed, limited or precluded entirely. Because Kalmia`s tender offer is not for 100% of the Units, it would not be affected by Starwood`s consent solicitation. There are currently 135,000 Units outstanding in WHLP.
Subsidiaries of Starwood are the general partner of WHLP and manage the Westin Michigan Avenue hotel.