Five months after Starwood Hotels and Resorts – which operates brands like Sheraton, St. Regis, Westin, and W – announced it would sell itself for $12 billion to Marriott to make the world’s largest hotelier, the company revealed that it had received an unsolicited takeover bid of roughly $14 billion from a group of suitors.
The Associated Press reports the consortium, led by China-based Anbang Insurance Group, offered $76 per share for Starwood.
The hotel operator said on Monday that it still favors the Marriott deal — which would combine the companies for more than 5,500 owned or franchised hotels with 1.1 million rooms in more than 100 countries around the world — but that it would consider the latest bid.
A rep for Marriott tells the AP that it stands behind its previous offer for Starwood, noting that the companies’ shareholders are expected to vote on the deal March 28.
If Starwood opts to go with the consortium offer, it would be required to pay Marriott a $400 million termination fee.
While Anbang is relatively unknown in the U.S., the company previously purchased Hilton’s flagship Waldorf Astoria in Manhattan for $1.95 billion in October 2014.
Starwood first announced in April 2015 that it had decided to explore a sale. Several months later the company had reached out to potential bidders such InterContinental Hotels Group Plc, Wyndham Worldwide Corp, and sovereign wealth funds.
Back in late October it was reported that Hyatt Hotels was in talks to buy Starwood, but neither company would provide comment on the speculation.
During that same week, Starwood announced that it had sold its vacation ownership business to Interval Leisure Group for $1.5 billion.
Starwood receives nearly $14B buyout bid from Chinese group [The Associated Press]
by Ashlee Kieler via Consumerist
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