Anbang drops bid to buy Starwood, clearing way for Marriott - Los Angeles Times
Advertisement

Anbang drops bid to buy Starwood, clearing way for Marriott

Starwood Hotels & Resorts Worldwide Inc. is the owner of Sheraton and St. Regis hotels. The Sheraton Fort Lauderdale Beach Hotel is shown on July 25, 2011.

Starwood Hotels & Resorts Worldwide Inc. is the owner of Sheraton and St. Regis hotels. The Sheraton Fort Lauderdale Beach Hotel is shown on July 25, 2011.

(Wilfredo Lee / Associated Press)
Share via

Anbang says it is dropping its $15 billion offer to acquire Starwood Hotels, citing various market considerations and ending a bidding war for the parent of St. Regis and Sheraton resorts.

The China-based insurance company, which was leading a consortium of potential investors, said that it won’t proceed further, an abrupt announcement that sent shares of Starwood down 4 percent in late trading Thursday.

Starwood Hotels & Resorts Worldwide Inc., based in Stamford, Connecticut, said its board continues to support its existing deal with Marriott, which initially offered $12.2 billion for Starwood in November. That has since grown to more than $14 billion.

Advertisement

Under the existing agreement, Starwood shareholders will get $21 cash and 0.80 of a Marriott Class A share for each Starwood share held. Starwood shareholders will own about 34 percent of the combined company, which, with 30 brands, would be the world’s largest hotel chain.

Marriott International Inc. reaffirmed that its offer creates significant economies of scale and provides shareholders a better deal over the long term. The Bethesda, Maryland, company owns brands including the Ritz-Carlton and Renaissance Hotels.

Starwood shareholders are scheduled to vote on the merger April 8.

In after-hours trading, Starwood shares fell 4.4 percent to $79.75. Marriott shares slid 5 percent to $67.64.

Advertisement

ALSO

MetLife’s ‘too big to fail’ label is taken away, a win for the insurance giant

LA is losing out on $41 million in taxes from AirBnB, study says

Advertisement

FCC votes to make low-income Americans eligible for subsidy for high-speed Internet service

Advertisement