Starwood Hotels & Resorts received an increased buyout bid worth about $14.1 billion from a group led by China-based Anbang Insurance Group, one week after Starwood reached an amended buyout agreement with Marriott International.
Anbang, along with J.C. Flowers & Co. and Primavera Capital Ltd., on March 26 initially boosted its all-cash Starwood bid to $81 per Starwood share, then increased it to $82.75 a share, Starwood said Monday.
Starwood — whose brands include W, Sheraton, Aloft and Westin — said the bid is “reasonably likely to lead to a superior proposal" than Marriott’s. Starwood added Monday that its
board has not changed its recommendation to support the Marriott agreement.
A week ago, Starwood reached an agreement to be acquired by Marriott for $13.6 billion in stock and cash, about 10% higher than the agreement the two companies reached in November. Under the most recent agreement, Marriott would pay $79.53 a share, including $20 per Starwood share in cash.
Starwood’s termination fee for ending an agreement with Marriott is $450 million. Both companies had agreed to convene stockholders meetings slated for Monday to vote on the amended agreement.
The Anbang-led group on March 10 made an all-cash offer for Starwood for $76 per Starwood share, and on March 18 raised it to $78 a share, or about $13.2 billion. Starwood said it would accept the offer and gave Marriott until March 28 to submit a counteroffer.
Marriott in a statement
Monday said it was “confident that the previously announced amended merger
agreement is the best course for both companies.”
“Starwood stockholders should give serious consideration
to the question of whether the Anbang-led consortium will be able to close the proposed
transaction, with a particular focus on the certainty of the consortium's
financing and the timing of any required regulatory approvals,” Marriott said.
Marriott first agreed to acquire Starwood last November for $72.08 a share, or about $12.2 billion. The combined company would include 30 brands and total almost 5,700 hotels worldwide.
___
This report was updated Monday to add a statement from Marriott.