Starwood Hotels &
Resorts CEO Thomas Mangus said Friday he was “disappointed” that a consortium
led by Anbang Insurance Group withdrew its $14.1 billion buyout offer but was
“excited” for the prospect of Marriott International owning Starwood.
Speaking on a conference
call broadcast from the New York Marriott Marquis on Friday, Mangus
complimented Anbang for its efforts, saying that the company’s offer was “very
credible” and that Anbang ”moved mountains” in trying to acquire Starwood.
Anbang’s group, which included J.C. Flowers & Co. and Primavera Capital
Ltd., made an offer of $82.75 per Starwood share before withdrawing it, citing
“We worked in good faith
to drive as much value for this transaction as we could, and were disappointed
when we couldn’t take that final step,” Mangas said.
Mangas encouraged a “yes”
vote from stockholders for the Marriott agreement, noting that it is now "the
only deal on the table."
Meanwhile, Marriott CEO
Arne Sorenson defended his company’s decision to boost its bid for Starwood
after Anbang’s first offer, calling that offer “breathtaking” and “highly credible.”
Under Marriott’s buyout agreement, Starwood shareholders will receive $21 in cash and 0.80 shares of Marriott
Class A common stock for each share of Starwood common stock. The deal is
valued at about $13.3 billion, about $1.1 billion more than Marriott’s original
agreement to buy Starwood in November.
Despite the higher
purchase price, Sorenson said on Friday’s call that it would be “very
surprising” if Marriott shareholders didn’t vote for the acquisition.
“We are absolutely
thrilled to be here,” Sorenson said. “We have zero buyer’s remorse.”
Sorenson added that U.S.
and Canada regulatory agencies already have cleared the acquisition, and that he
is confident that European and Chinese regulators will do likewise because
Marriott’s market share in Europe and China is “quite light.”