Chinese Led Group Makes Unsolicited Bid for Starwood

Starwood had agreed to a buyout from Marriott for $72, until the Chinese entered the fray this weekend with a superior offer. Anbang Insurance Group is one of China’s largest insurance companies and they don’t give a shit about Marriot’s plans for Starwood. They are leading a group of savage investors to acquire it and kick Marriott to the side.

The proposal is $76 in cash for all of the company’s outstanding shares, Starwood said in a statement on Monday. That values Stamford, Connecticut-based Starwood at about $12.9 billion, based on its estimate of 170 million shares.

While Starwood didn’t identify the bidder in its statement, Marriott said Anbang led the group’s offer in a separate announcement in which it confirmed its plan to buy Starwood.

Starwood “will carefully consider the outcome of its discussions with the consortium in order to determine the course of action that is in the best interest of Starwood and its stockholders,” the hotel operator said. Starwood said it still supports Marriott’s offer.

Under both offers, Starwood shareholders would also get Interval Leisure Group stock from a previously announced spin off of vacation ownership business, Vistana Signature Experiences, and subsequent merger with ILG.

Marriott’s offer for Starwood valued the company at $72.08 per share when it was made. Starwood would have to pay Marriott a $400 million termination fee in cash if it decided to enter into another deal or changes or withdraw its recommendation to its stockholders to vote in favor of the Marriott deal.

This should be interesting.