BREAKING (Monday, March 21, 9:30 a.m.): Marriott-Starwood Merger Back On
Starwood Hotels & Resorts Worldwide has agreed to sell
to a China-based consortium led by Anbang
Group Insurance Co. in a $13.2 billion deal that breaks Starwood's $12.2
billion deal
with Marriott International.
Starwood released a statement Friday morning stating that
its board of directors found the fully financed offer from the consortium,
which also includes J.C. Flowers & Co. and Primavera Capital, a
"superior proposal." Anbang put forth its competing bid on March 10,
offering $76 per share in cash and later increasing the amount to $78 per share
in cash.
Marriott for its part has until 11:59 p.m. on March 28, when
shareholders from each company were originally scheduled
to vote on their merger, to renegotiate its original agreement and beat the
consortium's offer. If the original deal is terminated, Starwood would be
required to pay Marriott a $400 million cash fee.
Marriott released a public comment just after news broke
Friday morning, stating, "Marriott continues to believe that a combination
of Marriott and Starwood is the best course for both companies and offers the
best value to Starwood shareholders. Marriott is in the process of reviewing
the Anbang consortium's proposal and is carefully considering its alternatives."
Marriott added it would consider postponing its
March 28 shareholder meeting, a step Starwood has already taken.