Market Overview

Starwood Hotels Receives Revised Merger Offer From Anbang After Marriott Bidding War

Share:
Starwood Hotels Receives Revised Merger Offer From Anbang After Marriott Bidding War

Shares of Starwood Hotels & Resorts Worldwide Inc (NYSE: HOT) were trading higher by more than 2 percent after Monday's market open, as the company updated its investors over an ongoing bidding war.

On March 26, Starwood received a non-binding proposal from a consortium of investors, including China's Anbang Insurance Group, to acquire all of its outstanding shares for $81.00 per share in cash. The company added that it commenced discussions with the consortium, which went on to revise its proposal to $82.75 per share in cash.

The consortium's revised offer represents an increase of $4.75 per share from its non binding proposal on March 18.

Related Link: Is The Starwood-Marriott Merger Bad For American Express

Starwood added that the new proposal is "reasonably likely to lead to a "Superior Proposal" as defined in Starwood's merger agreement with Marriott International Inc (NASDAQ: MAR).

Marriott has previously offered to acquire Starwood in a cash-and-stock deal that values its stock at $85.36.

Starwood noted in its press release that its "Board has not changed its recommendation in support of Starwood's merger with Marriott." In the meantime, Starwood will continue "evaluating the best course of action that is in the best interest of Starwood and its stockholders."

Shares of Marriott spiked higher by nearly 5 percent following Starwood's announcement.

Image Credit: Public Domain

 

Related Articles (HOT + MAR)

View Comments and Join the Discussion!

Posted-In: Anbang Insurance hotel stocks Hotels M&AM&A News Travel Movers General Best of Benzinga