BENGALURU: US hotel operator Starwood Hotels & Resorts Worldwide Inc received a buyout offer from a consortium led by China’s Anbang Insurance Group, possibly derailing the company’s planned takeover by rival Marriott International Inc.
The offer of US$76 per share in cash values Starwood at US$12.84bil (RM52.83bil). The consortium also includes private equity firms J.C. Flowers & Co and Primavera Capital Group, a source told Reuters.
Marriott said it remained committed to its offer for Starwood, which would create the world’s largest hotel chain with top brands including Sheraton, Ritz Carlton and the Autograph Collection.
Marriott’s offer of US$72.08 per share in stock and cash valued Starwood at US$12.18bil (RM50.11bil) on Nov 16. That offer is now worth about US$11bil (RM45.26bil) as Marriott shares have dropped 6.5% since.
Starwood shares rose 8% in premarket trading on Monday.
Anbang owns New York’s Waldorf Astoria hotel and has agreed to buy Strategic Hotels & Resorts Inc from Blackstone Group LP for around US$6.5bil (RM26.74bil), a person briefed on the matter told Reuters on Saturday.
Anbang’s offer of US$76 per share for Starwood excludes the amount shareholders will receive as part of the previously announced sale of Starwood’s vacation ownership business, currently valued at about US$5.50 per Starwood share.
Interval Leisure Group said in October it would buy Starwood’s vacation ownership business, Vistana Signature Experiences, then valued at about US$1.5bil.
Marriott’s offer of US$72.08 per share also excluded the vacation ownership business.
Starwood said it received a waiver from Marriott that allows it to engage in discussions with the consortium. The waiver will expire at 11:59pm ET (0359 GMT) on March 17.
Lazard and Citigroup Global Markets Inc are financial advisers to Starwood. Cravath, Swaine & Moore LLP is legal counsel. - Reuters
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