CNBC: Hyatt Hotels In Talks To Buy Starwood Hotels

(RTTNews) - Hyatt Hotels Corp. (H) Is in talks to acquire Starwood Hotels and Resorts Worldwide Inc. (HOT), CNBC reported Wednesday, citing sources.

According to the CNBC report, Hyatt management would retain control of the combined company under a cash and stock deal. Shares of Starwood Hotels are gaining more than 5 percent in regular trading activity.

Starwood Hotels has a market capitalization of $13.4 billion, while Hyatt has a market capitalization of $7.2 billion.

The Wall Street Journal had earlier reported that at least three Chinese companies are competing to win approval from the Chinese government to bid for Starwood Hotel.

According to the WSJ report, lodging giant Shanghai Jin Jiang International Hotels (Group) Co., Hainan Airlines parent HNA Group, and sovereign-wealth fund China Investment Corp. have submitted separate proposal to the Chinese government over the past two months.

HOT is trading at $79.12 4.31 5.76 percent on a volume of 4.36 million shares.

H is trading at $50.35, down $0.20 or 0.4 percent on a volume of 1.7 million shares.