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Starwood says Anbang bid represents “Superior Proposal”

21 Mar 2016 by BusinessTraveller
Marriott International’s proposed merger with Starwood Hotels and Resorts hangs in the balance, following a “Superior Proposal” from a Chinese consortium. Last week Starwood confirmed it had received a rival bid from the consortium led by insurance giants Anbang (see news March 15). Starwood views the new bid as a “Superior Proposal”, and has confirmed to Marriott that it intends to terminate its merger agreement with the US group “unless Marriott and Starwood agree on revisions to their merger agreement that Starwood’s board of directors determines to be superior to the Anbang proposal”. Marriott has until the end of March 28 to propose new terms, and says it is “in the process of reviewing the Anbang consortium’s proposal and is carefully considering its alternatives”. Should Starwood terminate the agreement in order to accept Anbang’s proposal, it will have to pay Marriott US$400 million in cash under the terms of the original agreement. The consortium’s cash proposal of approximately US£13 billion is around 15 per cent higher than Marriott’s current cash and stock offer. starwoodhotels.com, marriott.com Mark Caswell
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