It seems that Starwood Hotels & Resorts is back on Marriott International’s side for most viable buyout option after the U.S. hotel company updated its bid to $13.6 billion or $79.53 a share, on Monday.
On Friday, March 18, it was revealed that Starwood had decided the Chinese business consortium’s bid of $13.2 billion was a “superior proposal” compared to Marriott’s initial bid of around $11.5 billion in cash and shares. Starwood then gave Marriott through March 28 to submit a competing bid.
Marriott’s fast response time on a revised bid suggests that it is serious about taking over Starwood, which supporters of the deal believe to be the safer long-term option, but those who oppose the merger argue it could create a monopoly of sorts in the hotel industry. Whereas the Anbang buyout, if accepted, could foster competition, but also may lead to scrutiny over national security concerns from U.S. officials.
The Wall Street Journal reported that the state-owned China Construction Bank Corp. would provide debt financing for Anbang’s Starwood deal, which could mean a follow-up bid is not out of the question.
More information on Marriott’s $13.6 billion bid is available via USA Today.
