China-led group targets Starwood; tops Marriott offer

Photo: Reuters

U.S. hotel operator Starwood Hotels & Resorts Worldwide Inc received a buyout offer from a consortium led by China‘s Anbang Insurance Group, possibly derailing the company’s planned takeover by rival Marriott International Inc.

The offer of $76 per share in cash values Starwood at $12.84 billion. The consortium also includes private equity firms J.C. Flowers & Co and Primavera Capital Group, a source told Reuters.

Marriott said it remained committed to its offer for Starwood, which would create the world’s largest hotel chain with top brands including Sheraton, Ritz Carlton and the Autograph Collection.

Marriott’s offer of $72.08 per share in stock and cash valued Starwood at $12.18 billion on Nov. 16. That offer is now worth about $11 billion as Marriott shares have dropped 6.5 percent since.

Starwood shares rose 8 percent in premarket trading on Monday.

Anbang owns New York’s Waldorf Astoria hotel and has 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.

Anbang’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 also excluded the vacation ownership business.

Starwood said it received a waiver from Marriott that allows it to engage in discussions with the consortium. The waiver will expire at 11:59 p.m. ET on March 17.

Lazard and Citigroup Global Markets Inc are financial advisers to Starwood. Cravath, Swaine & Moore LLP is legal counsel.

Also Read:

China’s Anbang to acquire Strategic Hotels for $6.5b

Marriott to buy Starwood in $12.2b deal creating the world’s largest hotel chain

Reuters

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.