Starwood Hotels said today that it favours a takeover bid from a consortium led by China's Anbang Insurance over an earlier deal with Marriott, after the Anbang group increased its offer.
Starwood's board was persuaded by Anbang's USD 2 increase in its Monday offer to USD 78 a share, and said it plans to notify Marriott that their already agreed merger was off.
Starwood had agreed to Marriott's USD 63.74 per share cash-and-stock offer last November for its network of 1,270 properties in 100 countries, including the Westin, Sheraton, Le Meridien and W brands.
But the Chinese giant stepped in the way this week as it announced nearly USD 20 billion in two proposed hotel takeover deals.
The Anbang proposal values Starwood at USD 13.2 billion and comes as the Chinese giant has also agreed to buy a portfolio of 16 luxury hotel and resort properties from the Blackstone group for USD 6.5 billion.
With the new Anbang offer, Starwood's board said in a statement that it "intends to terminate the Marriott merger agreement and enter into a definitive agreement with the consortium.
