The on-off merger between Marriott Hotels and Starwood faces fresh doubts today as Starwood has announced the likelihood of "an improved offer" from Chinese consortium Anbang.
The merger was derailed at the eleventh hour by the offer from Anbang (see online news here) only for Marriott to make an improved offer (see news, March 2015).
Today Starwood announced that "a revised, non-binding proposal from a consortium consisting of Anbang Insurance Group Co., Ltd., J.C. Flowers & Co. and Primavera Capital Limited (the “Consortium”) is reasonably likely to lead to a “Superior Proposal” as defined in Starwood’s merger agreement with Marriott International, Inc. (NASDAQ: MAR) (“Marriott”)."
At present, Starwood’s Board has not changed its recommendation in support of Starwood’s merger with Marriott.
For its part, Marriott said it had "today reaffirmed its commitment to acquire Starwood Hotels & Resorts ... confident that the previously announced amended merger agreement is the best course for both companies."
Tom Otley
