As reported by CNBC, “Chinese insurer Anbang is set to acquire hotel operator Starwood Hotels & Resorts Worldwide for about $13.2 billion, the firm’s biggest push yet into the global real estate market.” Earlier this week, we posted about the offer that turned the Marriott acquisition of Starwood upside down for the moment. I’m sure many of you are with me in crossing our fingers that the Chinese group wins out in this deal in order to keep the Starwood program potentially in tact. Here’s hoping! For now, Marriott has 5 days to respond.
Starwood Agrees To China’s Anbang Purchase
Anbang’s approach to Starwood first became public earlier this week, and Starwood said Friday it had determined Anbang’s offer was superior to a deal struck last year with Marriott.
Starwood’s original suitor, Marriott, now has five days to respond. It struck a $12.2 billion deal to buy Starwood in November. Mariott said in a statement that it continues to believe it is a better merger partner and that it is considering its options.
Sources told CNBC that Marriott is expected to make a counter-bid.
As reported by Marriott’s News Center, “Under the terms of Marriott’s merger agreement with Starwood, Marriott has the right to propose revised terms and Starwood must negotiate in good faith with Marriott to discuss any such proposed revised terms, for a period of five business days ending on Monday, March 28 at 11:59 p.m. ET. If Starwood terminates the Marriott merger agreement in order to accept the consortium proposal, Starwood must pay Marriott a termination fee of $400 million in cash.”
Looks like we will have to wait a little longer to see how this plays out. In the meantime, don’t forget that there is a great opportunity with the best publicly offered sign up bonus ending soon on both the Starwood Preferred Guest® Credit Card from American Express and the Starwood Preferred Guest® Business Credit Card from American Express as they look to expand their book of business on these cards before the merger. Read the full post about these offers here.