Sunterra Corp. began mulling selling all of the companyin July,after perviously looking to sell only its operations in Europe. Thedeal with Diamond Resorts was signed March 9 and is backed bySunterra's board of directors. The offer will be open for 40calendar days following commencement. The debt financing supportingthe offer will be financed by a bank consortium led by CreditSuisse.

The per-share offer price represents a 35% premium to the shareprice on March 8. If Diamond Resorts' affiliate acquires at least90% of Sunterra's outstanding shares, it will merge with and intoSunterra, with any shares not tendered in the tender offer beingconverted into the right to receive $16 per share in cash. If itaccumulates 80% of the shares, it has the right to acquire newlyissued shares of Sunterra in order to reach the 90% threshold.

Sunterra is one of the world's largest vacation ownershipcompanies with more than 326,000 owner families and 96 branded oraffiliated vacation ownership resorts throughout the continentalUnited States and Hawaii, Canada, Europe, the Caribbean andMexico.