The Sheraton Changbaishan Resort, part of Starwood’s portfolio
CHINA’s Anbang Insurance Group, in a continued fight for Starwood Hotels & Resorts Worldwide, has raised its stake for the hotel chain to nearly US$14 billion, outbidding Marriott International’s approximately US$13.6 billion offer announced early last week.
Anbang, along with a consortium comprising Primavera Capital Group and J.C. Flowers & Co., is offering Starwood US$82.75 a share in this latest round, up from Marriott’s roughly US$79.53 per share last offered in an ongoing bidding war.
Starwood stated in a release yesterday that Anbang’s cash offer is likely to result in a superior deal to Marriott’s cash-and-stock proposal.
Discussion with the Anbang-led consortium is still continuing, and Starwood further added that “there can be no assurance that discussions will result in a binding proposal from the consortium.”
At current, Starwood shareholders are slated to meet on April 8 to approve the Marriott deal, with the transaction expected to close by mid-2016.
If Starwood decides not to go ahead with the deal, termination fees payable to Marriott amounts to US$450 million.
Analysts earlier interviewed by TTG Asia e-Daily expect Marriott to not respond with any further counter proposals and will likely walk away if Starwood decides to take up Anbang’s offer.
