{"id":1004140622,"date":"2016-03-30T01:13:51","date_gmt":"2016-03-30T09:13:51","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004140622"},"modified":"2020-04-23T05:47:16","modified_gmt":"2020-04-23T13:47:16","slug":"anbang-consortium-ups-the-ante-for-starwood-surpassing-marriotts-latest-bid","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/anbang-consortium-ups-the-ante-for-starwood-surpassing-marriotts-latest-bid\/","title":{"rendered":"Anbang Consortium Ups the Ante for Starwood, Surpassing Marriott\u2019s Latest Bid"},"content":{"rendered":"

By Gail Kalinoski<\/p>\n

\"The<\/a>

The Hotel del Coronado, a San Diego landmark that Angbang would acquire as part of its reported $6.5 billion deal for Strategic Hotels & Resorts.<\/p><\/div>\n

New York<\/strong>\u2014The bidding war for Starwood Hotels & Resorts Worldwide Inc.<\/a>, heated up again this week as the consortium led by Anbang Insurance Group<\/a> of China upped the ante to $14 billion, topping Marriott International Inc.<\/a>\u2019s most recent $13.6 billion offer. While Marriott reaffirmed its commitment to acquire Starwood, several analysts have said Marriott might just have to walk away after all.<\/p>\n

\u201cBased on the value of expected synergies, it appears Marriott could <\/em>increase its bid further, but it\u2019s not clear whether that means they will,\u201d <\/em>Lukas Hartwich, an analyst with Green Street Advisors LLC, wrote in an emailed report. \u201cFor example, if Marriott were to match the Consortium\u2019s bid, the company would essentially give up most of the upside it expects to create from the combination of the two companies.\u201d<\/p>\n

Hartwich and others have said Marriott, which first revealed its intentions to acquire Starwood in November for $12.2 billion<\/a>, could end up with no deal and instead collect the $450 million termination fee.<\/p>\n

\u201cI just think Marriott is too disciplined to pay more than what they\u2019ve already offered,\u201d David Loeb, a senior research analyst at Robert W. Baird, said on CNBC\u2019s The Rundown<\/em> show Tuesday morning. \u201cIf I was a Starwood shareholder, I would be asking for the maximum value and I would be asking for the maximum value now. I think Anbang\u2019s offer, being all cash, is probably the one that shareholders would rather have. The advantage is definitely with Anbang at this point.\u201d<\/p>\n

Last week, Deborah Friedland, EisnerAmper LLP\u2019s director of corporate finance practice, told Commercial Property Executive<\/a> that\u00a0Anbang would likely counter<\/a> Marriott\u2019s latest offer of $13.6 billion, and she was right.<\/p>\n

On Monday, Stamford, Conn.-based Starwood announced it had received an offer that it had deemed \u201creasonably likely to lead to a \u2018Superior Proposal\u2019 as defined in Starwood\u2019s merger agreement with Marriott International.\u201d The non-binding proposal came from the Anbang consortium that also includes private equity groups J.C. Flowers & Co. and Primavera Capital Ltd. and proposed acquiring all outstanding shares of Starwood\u2019s coming stock for $82.75 per share in cash, boosting its offer to about $14 billion from an earlier bid of $13.2 billion. Over the weekend, it had also offered $81 per share in cash before coming in with the final offer of $82.75 by Monday.<\/p>\n

Starwood, which had planned to hold a stockholders\u2019 meeting Monday to consider the merger with Marriott and its $13.6 billion bid, postponed the meeting until April 8. A press release from Starwood noted that the Board of Directors \u201chas not changed its recommendation in support of Starwood\u2019s merger with Marriott.\u201d But it did add, \u201cStarwood and the consortium are continuing to discuss non-price terms related to the consortium\u2019s revised proposal, and are working to finalize the other terms of a binding proposal from the consortium, including definitive documentation.\u201d<\/p>\n

Meanwhile, Bethesda, Md.-based Marriott issued its own press release Monday reaffirming its commitment to acquire Starwood, stating it was \u201cconfident that the previously announced amended merger agreement is the best course for both companies.\u201d<\/p>\n

Marriott said the \u201ccombined company will offer stockholders significant equity upside and greater long-term value driven by a larger global footprint, wider choice of brands for consumers, substantial revenue synergies, and improved economics to owners and franchisees leading to accelerated global growth and continued strong returns.\u201d<\/p>\n

The amended agreement states that Starwood shareholders would receive $21 in cash and 0.80 shares of Marriott International Inc. Class A common stock for each share of Starwood Hotels & Resorts Worldwide Inc. common stock. The transaction values Starwood at approximately\u00a0$13.6 billion\u00a0(not including its timeshare business), consisting of\u00a0$10 billion\u00a0of Marriott International stock and\u00a0$3.6 billion in cash. Starwood shareholders would own approximately 34 percent of the combined company\u2019s common stock after completion of the merger, based on current shares outstanding<\/p>\n

If the merger goes through, it would create the world\u2019s largest hotel company. Starwood, which has brands such as St. Regis, W, Westin, Sheraton, Four Points by Sheraton, Aloft and Element, has nearly 1,300 properties in approximately 100 countries. Marriott has more than 4,400 properties in 87 countries and territories. Its brands include The Ritz Carlton, Bulgari, JW Marriott, Renaissance Hotels, Marriott Hotels, Courtyard, Residence Inn, SpringHill Suites, Fairfield Inn & Suites and TownePlace Suites.<\/p>\n

It would also be the largest purchase to date made by a Chinese company, according to the Wall Street Journal<\/a>. Asian investments, particularly in the United States hospitality sector, have been increasing in recent years with Anbang leading the pack with its October 2014 purchase of the iconic Waldorf Astoria New York<\/a> from Hilton Worldwide Holdings Inc. for $1.95 billion. More recently, Anbang announced plans to acquire luxury hotel owner Strategic Hotels & Resorts Inc.<\/a> for a reported $6.5 billion.<\/p>\n

While it has yet to make another counter offer, Marriott\u2019s news release Monday urged Starwood shareholders to \u201cgive serious consideration to the question of whether the Anbang-led consortium will be able to close the proposed transaction, with a particular focus on the certainty of the consortium\u2019s financing and the timing of any required regulatory approvals.\u201d<\/p>\n

Marriott also said it had scheduled an April 8 meeting for its stockholders to consider the proposed acquisition and merger agreement.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Chinese insurance group made a $14 billion offer to acquire Starwood Hotels & Resorts Worldwide, topping Marriott International’s most recent bid.<\/p>\n","protected":false},"author":1068,"featured_media":1004139326,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,21825,21751,21783,23891,21742],"tags":[],"class_list":["post-1004140622","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-finance","category-hotel","category-investment","category-national","category-latest"],"acf":[],"yoast_head":"\nAnbang Consortium Ups the Ante for Starwood, Surpassing Marriott\u2019s Latest Bid - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/anbang-consortium-ups-the-ante-for-starwood-surpassing-marriotts-latest-bid\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Anbang Consortium Ups the Ante for Starwood, Surpassing Marriott\u2019s Latest Bid\" \/>\n<meta property=\"og:description\" content=\"The Chinese insurance group made a $14 billion offer to acquire Starwood Hotels & Resorts Worldwide, topping Marriott International's most recent bid.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/anbang-consortium-ups-the-ante-for-starwood-surpassing-marriotts-latest-bid\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2016-03-30T09:13:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-23T13:47:16+00:00\" \/>\n<meta name=\"author\" content=\"Gail Kalinoski\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/03\/Hotel-Del-Coronado-at-Night-with-Moon_JB.jpg\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/anbang-consortium-ups-the-ante-for-starwood-surpassing-marriotts-latest-bid\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/anbang-consortium-ups-the-ante-for-starwood-surpassing-marriotts-latest-bid\/\",\"name\":\"Anbang Consortium Ups the Ante for Starwood, Surpassing Marriott\u2019s Latest Bid - 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