The W Hong Kong, part of Starwood’s portfolio
CALLING the Anbang consortium’s bid for it a “superior proposal”, Starwood Hotels and Resorts’ board of directors has informed Marriott International that it intends to terminate their merger agreement, giving Marriott until 23.59 ET on March 28 to review Anbang’s proposal and negotiate revisions to the existing agreement.
Marriott is under a lot of pressure, with the Anbang group increasing its bid from US$76 to US$78 per share, even prior to Starwood’s decision to choose Anbang’s offer over Marriott’s. Anbang’s initial bid of US$76 per share had already carried a premium over Marriott’s offer.
In a statement last Friday, Marriott said they were “in the process of reviewing the Anbang consortium’s proposal and is carefully considering its alternatives”, adding that they still believed the merger is the best course of action for both itself and Starwood.
Experts keeping a close watch on the developments said however, that an Anbang-Starwood deal might actually be preferable.
Starwood will owe Marriott US$400 million in termination fees if the deal indeed falls apart.
