Starwood Hotels Confirms $76/Share Unsolicited Cash Bid From Consortium

According to a press release from Marriott International Inc MAR Monday morning, the company is committed to acquire Starwood Hotels "to create the world's largest hotel company."

"The combined company will offer stockholders significant equity upside and greater long term value driven by a larger global footprint, wider choice of brands for consumers, improved economics to owners and franchisees leading to accelerated global growth and continued strong returns," Marriott stated.

Marriott's press release follows a notification last Friday made by Starwood to Marriott that the former "had received an unsolicited indication of interest in purchasing Starwood from a consortium of potential investors, led by Anbang Insurance Group."

According to the Associated Press, Anbang Insurance Group "remains largely unknown to most Americans," but "has quickly positioned itself to become a major player in the U.S. hotel industry.

"The offer from the Chinese group includes $76 per Starwood share and Interval Leisure Group stock currently valued at about $5.50 per Starwood share," the AP reported.

Starwood has been cited as saying that not only are there still "a number of matters" in need of additional attention regarding the group's proposal, but that while it is looking into the Chinese bid, Starwood "still favors" Marriott's deal.

"Shareholders of Marriott and Starwood are expected to vote on that deal on March 28. If Starwood ends its agreement with Marriott or changes or withdraws its recommendation for shareholders to vote in favor of the Marriott transaction, Starwood would have to pay a $400 million termination fee," said the AP.