Chinese Investors Looking To Outbid Marriott in Starwood Acquisition
by Jessica MontevagoA Chinese investment group made an unsolicited bid to acquire Starwood Hotels & Resorts, potentially hampering Marriott’s plan to take over the company creating the world’s largest hotel chain.
A consortium of investors led by Anbang Insurance Group offered to pay Starwood $76 per share Friday, worth about $12.8 billion.
Starwood has until Thursday to discuss the offer with Anbang. Starwood would owe Marriott a termination fee of $400 million if it pulls out of their agreement.
The $12.2 billion transaction was announced in November, and would give Marriott a global reach in more than 100 countries with more than 5,500 hotels with 1.1 million rooms worldwide.
Shareholders for both Marriott and Starwood are currently set to vote March 28 on the transaction.
Starwood said Monday in a statement, “Starwood’s Board of Directors has not changed its recommendation in support of Starwood’s merger with Marriott,” but went on to say it’s board, along with legal and financial advisors, will carefully consider the new bid and do what’s best for Starwood and its stockholders.
