Stamford-based Starwood Hotels & Resorts Worldwide Inc. has received a competing buyout bid from an investment consortium led by the Chinese insurance firm Anbang.
In November 2015, Starwood announced a “definitive” merger agreement with hotel mega-brand Marriott International Inc. for $12.2 billion.
Starwood announced on March 10 that it had received a nonbinding proposal from a “consortium” of companies to acquire all of the outstanding shares of common stock of Starwood for $76 per share in cash.
The proposal by Anbang is estimated at $14 billion and continues the company”™s strategy of buying premier hotel groups and locations including New York”™s famed Waldorf Astoria for nearly $2 billion in 2014 and most recently negotiating a $6.5 billion deal with luxury hotel owner Strategic Hotels & Resorts Inc. of Chicago, owner of JW Marriot Essex House in New York City, among other high-profile hotels nationwide.
Starwood said that the company has received a waiver from Marriott enabling it to engage in discussions with, and provide diligence information to, the consortium in connection with its proposal. Starwood began discussions with the consortium on March 11. The Marriott waiver expired at 11:59 p.m. Eastern Time on March 17.
Starwood reported its board of directors has not changed its recommendation in support of the company”™s merger with Marriott, which would create the world”™s largest hotel company with 1.1 million rooms in more than 5,500 international hotels.
According to Starwood, there are a number of matters to be resolved in the new buyout proposal and its board of directors “will carefully consider the outcome of its discussions with the consortium in order to determine the course of action that is in the best interest of Starwood and its stockholders.”
