Skift Take
Three of the named entities involved in the takeover bid for Starwood don't have much experience in the hotel business, but that won't keep them from buying Starwood.
What was assumed to be, more or less, a done deal with regard to Marriott's acquisition of Starwood, isn't quite the case anymore.
Today, Starwood Hotels & Resorts Worldwide announced it received an unsolicited acquisition bid of approximately $13 billion from a consortium led by Beijing-based insurance company, Anbang, that also includes private equity investor Chris Flowers and China-based investment firm, Primavera Capital Group.
The all-cash, non-binding, and highly conditional bid from the consortium will pay $76 a share, which is much higher than the offer from Marriott International. It also allows Starwood's executive team to stay in place.
In November 2015, Marriott bid $12.2 billion, including $11.9 billion in Marriott stock, as part of a merger agreement accepted by Starwood. As it stands right now, Marriott's merger transaction is valued at $72.08 per share, or approximately $11 billion, because Marriott's shares have dropped since November.
Right now, Starwood has until Thursday, March 17, to consider competing offers. If Starwood decides to end its agreement with Marriott, it will have to pay a $400 million breakup fee. Marriott and Starwood's stockholders are scheduled to meet on March 28 to vote on the merger, which would create the world's largest hotel chain, if approv
