Marriott International’s plans to take over Starwood Hotels & Resorts hit another roadblock Monday when China’s Anbang’s Insurance Group raised its offer for Starwood to $14 billion, the latest move in a heated bidding war.
Anbang’s new all-cash bid “is reasonably likely to lead to a ‘superior proposal’ ” to Marriott’s most recent $13.6 billion cash-and-stock offer for the parent company of Sheraton, St. Regis and W Hotels, Starwood said in a statement.
Anbang, which is leading a group of investors, is offering $82.75 for each share of Starwood, nearly $7 higher than its initial offer earlier this month. The consortium also includes two private equity firms: New York-based J.C. Flowers & Co. and China’s Primavera Capital Group.
Marriott said it “will monitor this development as it and Starwood continue to work toward the closing of its transaction and the successful integration of the two companies.”
The announcement comes one week after Marriott and Starwood said they had agreed to a revised merger agreement of $13.6 billion. Under Marriott’s most recent proposal, Starwood shareholders would receive $21 in cash and 0.8 shares of Marriott for each share of the Stamford, Conn.-based hotelier.
Bethesda-based Marriott originally announced plans to buy Starwood for $12.2 billion in November. Shareholders of Marriott and Starwood are set to vote on a possible merger between the companies on April 8.