Starwood Hotels & Resorts has received a last-minute proposal from Chinese insurance giant Anbang Insurance Group to acquire all outstanding shares of the hospitality group for US$76 per share in cash.
The bid could threaten Marriott International’s acquisition of Starwood, which was first announced last November (see here).
According to the original agreement, Starwood is allowed to negotiate with other potential bidders until March 17.
One advantage of the new offer is that it would be paid wholly in cash, whereas Marriott’s is a stock and cash option. The valuation offered by Anbang - $76 per share - is significantly more than the approximate US$63.74 per share expected under the Marriott deal.
Starwood has stated it has entered into discussions with the Chinese insurance group, but is still committed to the original agreement with Marriott.
“[The] board of directors has not changed its recommendation in support of Starwood’s merger with Marriott,” said Starwood in a press statement.
“The board, in consultation with its legal and financial advisors, will carefully consider the outcome of its discussions with the Consortium in order to determine the course of action that is in the best interest of Starwood and its stockholders.”
For more information, visit starwood.com
Clement Huang
