As predicted by various media outlets, the Chinese business consortium led by Anbang Insurance Group raised its bid for Starwood Hotels & Resorts to nearly $14 billion, as of Monday, March 28.
Starwood commented via press release that Anbang’s revised $82.75 per share cash bid would likely result in a “superior proposal” as defined in Starwood’s merger agreement with Marriott.
Marriott declined to reveal if it would raise its offer further, but the company did release an official statement that “reaffirmed its commitment to acquire Starwood Hotels & Resorts.” Marriott’s latest cash-and-stock offer is said to be worth about $78 per share at this time, according to Reuters.
Marriott also said that it felt the previously announced merger agreement “is the best course for both companies,” while confirming April 8 as the date for a special meeting of stockholders.
If Starwood decides to side with Anbang and break its revised acquisition agreement with Marriott, the hotel company would have to pay a “breakup fee” of $450 million to Marriott.
For more information on Anbang’s latest bid, check out Reuter’s breaking news report.
