Marriott International has reaffirmed its commitment to acquire Starwood Hotels & Resorts Worldwide after the latter company received an unsolicited takeover proposal from a group of potential investors led by China’s Anbang Insurance Group. Marriott notes that this unsolicited indication of interest is highly conditional and non-binding, and grants Starwood a waiver to expedite its evaluation of the letter from Anbang Insurance Group.
According to reports, Anbang has offered $76 a share of common stock in cash. Marriott International has offered $10.8 billion in stock and cash.
In the meantime, Marriott will continue to work towards the integration of the two companies in anticipation of votes by each company’s stockholders on March 28th. Marriott has stated it is confident that the previously announced merger agreement is the best course for both companies. The merger satisfies the conditions of the antitrust and competition authorities in the U.S. and Canada.
Starwood stated today that its board of directors has not changed its recommendation in support of Starwood’s merger with Marriott. However, Starwood’s board, in consultation with its legal and financial advisors, will carefully consider its next course of action.
If the merger with Marriott goes through, it will be completed by mid-2016, and create the world’s largest hotel company. If Starwood enters an agreement with another company, it will be obligated to pay Marriott a $400 million termination fee in cash.
Anbang also purchased the Waldorf Astoria New York for $1.95 billion from Hilton in 2014, and is reportedly acquiring Strategic Hotels & Resorts from Blackstone Group for $6 billion.
