Starwood Hotels gets unsolicited buyout proposal

Send a link to a friend  Share

[March 14, 2016]  (Reuters) - U.S. hotel operator Starwood Hotels & Resorts Worldwide Inc said it received a non-binding buyout offer from a consortium of companies, valuing the company at $12.84 billion.

The news comes four months after Marriott International Inc agreed to buy Starwood for $12.18 billion to create the world's largest hotel chain.

Starwood did not disclose the names of the companies that made the approach, but Marriott said in a separate statement that the consortium was led by China's Anbang Insurance Group.

Marriott said it remained committed to the Starwood acquisition.

Anbang has also agreed to buy Strategic Hotels & Resorts Inc from Blackstone Group LP for around $6.5 billion, a person briefed on the matter told Reuters on Saturday.

The consortium's offer of $76 per share for Starwood excludes the amount shareholders will receive as part of the previously announced sale of Starwood's vacation ownership business, currently valued at about $5.50 per Starwood share.

Interval Leisure Group said in October it would buy Starwood's vacation ownership business, Vistana Signature Experiences, then valued at about $1.5 billion.

Marriott's offer of $72.08 per share in stock also excluded the vacation ownership business.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty)

[© 2016 Thomson Reuters. All rights reserved.]

Copyright 2016 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 

Back to top