Starwood, Marriott Shares Under Pressure Following Anbang Consoritum's Bailed Takeover

Shares of Starwood Hotels & Resorts Worldwide Inc HOT were trading lower by more than 4.7 percent following a major development in the bidding war between Anbag Insurance Group and Marriott International Inc MAR.

Shares of Marriott were also trading lower by more than 5.5 percent Friday morning.

Starwood announced on Thursday it received notification from Anbag Insurance Group and Primavera Capital Limited (the "Consortium") that it has withdrawn a prior non-binding proposal to acquire all of the outstanding shares of Starwood for $82.75 per share.

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Starwood added the Consortium does not intend to make another proposal to acquire the hotel chain. The company also reaffirmed its unanimous support for the existing merger with Marriott International to create "the largest hospitality company in the world."

Bruce Duncan, Chairman of Starwood's Board, stated, "Throughout this process, we have been focused on maximizing stockholder value now and in the future. Our Board is confident this transaction offers superior value for Starwood's stockholders, can close quickly, and provides value-creation potential that will enable both sets of stockholders to benefit from future financial performance. We continue to be very excited about the combination of our two companies and are committed to completing this deal in an expeditious manner. We are confident Starwood stockholders will support a merger that will create the world's best and biggest hotel company and which offers significant long-term upside for not only our stockholders, but also our company and associates."

According to Reuters, the Consortium walked away from the bidding battle to avoid a protracted bidding war. Primavera's Chairman, Fred Hu, also told Reuters that Anbag is a "disciplined buyer.