STAMFORD, CONN. — Anbang Insurance Group and Marriott International Inc. (NASDAQ: MAR) entered a ceasefire yesterday. The bidding war between the two companies to purchase Starwood Hotels & Resorts Worldwide (NYSE: HOT) has ended, as Anbang has rescinded its latest offer.
A consortium consisting of Anbang, J.C. Flowers & Co. and Primavera Capital Limited upped its offer to $14 billion on March 26, outbidding Marriott’s previous offer of $13.6 billion, but Anbang is now withdrawing its offer due to “market considerations.”
It isn’t clear why Anbang retracted its latest bid or if Marriott had been planning to counteroffer.
Both Starwood’s and Marriott’s shares fell over 4 percent in Thursday’s after-hours trading. Starwood’s stock price closed on March 31 at $83.43 per share and opened April 1 at $79.81. Marriott’s stock price closed at $71.18 and opened at $67.48 per share.
Starwood’s board of directors continues to unanimously support the existing merger with Marriott, which will create the largest hospitality company in the world.
“Throughout this process, we have been focused on maximizing stockholder value now and in the future,” says Bruce Duncan, chairman of Starwood’s board. “We continue to be very excited about the combination of our two companies and are committed to completing this deal in an expeditious manner.”
Starwood will now stick with Marriott’s most recent offer of $77.94 per share, or $13.6 billion, according to The Wall Street Journal.
“We are confident Starwood stockholders will support a merger that will create the world’s best and biggest hotel company and which offers significant long-term upside for not only our stockholders, but also our company and associates,” says Duncan.
The special meeting for Starwood stockholders to vote on the Marriott-Starwood merger agreement will be held on Friday, April 8 in Stamford, Conn., where Starwood is headquartered.
— Christina Cannon