Starwood Hotels and Resorts Worldwide Inc. has accepted a revised US$13.6 billion acquisition offer from peer Marriott International Inc., spurning a bid from China’s Anbang Insurance Group.
Under the new deal, Marriott raised the cash portion of its offer to US$21 per share from US$2, valuing the total bid, which also includes stock, at US$79.53 as of Friday’s close of trading, Reuters reported.
Marriott had in November last year clinched a deal with Starwood for US$72.08 per share, prompting a superior bid from Anbang.
An Anbang-led group made an initial non-binding offer of US$12.8 billion on March 14, raising it later to US$13.16 billion, or US$78 per share in cash.
Marriott’s sweetened offer for Starwood, which owns the Sheraton and Westin brands, dramatically raises the stakes in the bidding war since the deal with Marriott prohibits Starwood from communicating with Anbang, the report noted.
If Anbang had succeeded with its offer, the acquisition would have been the largest ever by a Chinese company in the United States.
The Chinese group would not comment on Monday on whether it was planning a new bid, Reuters said.
A Marriott-Starwood combination will create the world’s largest hotel chain with top brands that also include Ritz Carlton and the Autograph Collection.
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