OTHER NEWS - Oct. 15, 1992

Committee Formed to Block Marriott Transaction: Marriott Corp.’s largest bondholders, enraged by the company’s plan to split its business, have formed a committee to try to block the transaction, sources close to the group said. The 10-member committee plans to choose an attorney to explore retaliatory actions, including a possible lawsuit, the sources said. Bondholders were stunned last week when Marriott announced that it would spin off its real estate operations into a separate, debt-laden business called Host Marriott Corp. The move would give most of the old company’s revenue to a much healthier company, called Marriott International Inc., which would manage Marriott’s vast hotel chain. After the announcement, Moody’s Investors Service Inc. downgraded investment-grade Marriott bonds to junk status, and the value of the bonds tumbled.