Anbang pulls out of Starwood bid

Development opens way for Marriott merger
A consortium led by Anbang Insurance Group has withdrawn its $14 billion bid for Starwood Hotels & Resorts Worldwide, opening the way for Marriott International to merge with the international hotel company to form the world’s largest hospitality giant.
China’s Anbang, along with Primavera Capital Group and JC Flowers & Co, had only days earlier raised an offer for Starwood in a move to outbid rival Marriott.
According to a statement by Starwood released yesterday, Anbang pulled out of the bidding war “as a result of market considerations” and added that it did not intend to make another proposal.
Starwood’s shareholders are set to vote on and approve the Marriott-Starwood merger on April 8, under terms agreed on March 21, which values Starwood at around $13.3 billion, or $77.94 per share.
Starwood shareholders will own approximately 34% of the combined company’s common stock after completion of the merger, based on current shares outstanding.
Thomas Mangas, chief executive of Starwood, reaffirmed its commitment to Marriott, saying: “The existing merger agreement provides substantial value to our stockholders through significant upfront cash consideration and long-term upside potential from projected shared synergies, including $250 million in cost synergies and significant revenue synergies, as well as ownership in one of the world’s most respected companies.”
TTG Asia