CHINA’S Anbang Insurance Group Co has raised its offer for Starwood Hotels & Resorts Worldwide Inc to almost US$14 billion in its latest challenge to the US hotel operator’s merger with Marriott International Inc .
The bidding war for Starwood has pitted Marriott’s ambitions to create the world’s largest lodging company with about 5 ECCO Hombre Soft 7 High Top Leather Negras Rebajas ,700 hotels against Anbang’s drive to create a vast investment portfolio of high-yielding US real estate assets.
The acquisition of Starwood, owner of the Sheraton and Westin brands, by Anbang would be the largest ever by a Chinese company in the United States.
Anbang’s consortium, which includes private equity firms JC Flowers & Co and Primavera Capital Ltd ECCO Hombre Whistler Gtx High Botas Amber Negras Rebajas , has offered US$82.75 per share in cash, in what is reasonably likely to lead to a proposal that is superior to the deal with Marriott, Starwood said yesterday.
Marriott’s latest cash-and-stock offer, which was announced on March 21 ECCO Johannesburg Gtx Botas Negras Rebajas , is currently worth around US$78 per share. Starwood’s board has not yet changed its recommendation to its shareholders in support of the company’s merger with Marriott, Starwood said. A vote for Starwood shareholders to approve the Marriott deal is scheduled for April 8.
Marriott declined to say yesterday if it would increase its offer further. In a statement, Marriott said it was confident that the previously announced amended merger agreement with Starwood is the best course for both companies.
“Starwood stockholders should give serious consideration to the question of whether the Anbang-led consortium will be able to close the proposed transaction, with a particular focus on the certainty of the consortium’s financing and the timing of any required regulatory approvals ECCO Helsinki Cap Tie Negras Rebajas ,” Marriott said in its statement.
In any deal with Anbang or Marriott, Starwood shareholders will also receive stock in Interval Leisure Group Inc, which is getting Starwood’s vacation ownership business, currently worth US$5.91 per Starwood share.
Some investors hoped Anbang’s move would prompt Marriott to walk away from an expensive deal.
“Marriott has the financial capacity and the wherewithal to push its bid up higher. However ECCO Illinois Wing Tip Tie Cognac Rebajas , so much of the transaction is based on Marriott’s current share price, I think investors would be less than thrilled if it increased its offer materially at this juncture,” said Bill Crow an analyst at Raymond James.
Anbang’s latest offer values Starwood at 13.5 times earnings. By comparison, peers Hyatt Hotels Corp and Hilton Worldwide Holdings Inc are trading at around 10 times earnings.
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