$14.4-bn Marriott bid wins Starwood back from Anbang
Marriott won over Starwood with a sweetened bid worth more than $14.4 billion just days after a Chinese insurance company appeared to steal it away from the hotel chain with a more lucrative offer. The buyout, which may still be contested by China's Anbang, would create the world's biggest hotel company and give Marriott a stable of tony properties run by Starwood, like the Hotel Del Coronado in San Diego.
Starwood, which owns Sheraton, Westin and St. Regis, over the weekend became the first US hotel operator to gain access to Cuba, a day before the arrival of President Barack Obama. It is the first visit to Cuba by a sitting president in almost 90 years as relations between the two nations thaw. The revised deal would give Starwood shareholders $21 in cash and 0.80 shares of Marriott International Inc. Class A stock for each Starwood share. Starwood shareholders are also expected to get Interval Leisure Group stock valued at $5.83 per share. Taken together, that would value Starwood stock at $85.36 per share, or about $14.41 billion.
Marriott has more than 4,400 properties in 87 countries and territories, under brands such as Ritz-Carlton, Residence Inn and Marriott. Starwood has nearly 1,300 properties in about 100 countries. Just days ago, Anbang put up an offer of $83.83 for each Starwood share, or approximately $14.15 billion.
Starwood stockholders would have received $78 in cash for each share they own plus $5.67 in stock for a spinoff of a vacation business.