Starwood Takeover: Anbang Raises Offer to Upset Marriott Bid
Deanna Ting
Photo Credit: The concierge desk at the Aloft London. Anbang made a counteroffer today to acquire Starwood. Starwood Hotels and Resorts
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The consortium led by Anbang Insurance Group increased its offer for Starwood Hotels and Resorts today to $82.75 per share, bringing its bid for the hotel brand to $13.8 billion, a $200 million premium over the value of Marriott's offer.
After Starwood accepted a newly revised merger agreement from Marriott on Monday, March 21, for $13.6 billion, Anbang responded March 26, offering $81 per share in all cash, or approximately $13.5 billion. This new offer, Starwood's board noted, "is reasonably likely to lead to a 'Superior Proposal'" as defined in the company's latest merger agreement with Marriott International.
Because this proposal is likely superior, Starwood was then allowed to engage in discussions with Anbang over the weekend. After speaking with the consortium, Starwood received a revised proposal with the increased purchase price of $82.75 in cash per share. Both groups remain in discussions, and are working to finalize a binding proposal.
The new $82.75 per share offer is a bump of $4.75 per share from the consortium's previous offer from March 18. Combined with the timeshare spin-off, Anbang's proposal and the spin-off would have a value of $88.66 per share, for a deal worth appr
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