Westin Starwood

Starwood Inclined to Go With Improved Anbang Bid

Mergers and Acquisitions Dow Jones Newswires

Starwood (HOT) has deemed a raised $78/share, or $13.2B, buyout offer from a Chinese group led by Anbang Insurance to be superior to the largely stock deal the hotelier reached in November with rival Marriott (MAR). That firm now has through March 28--a longer timeline than is typical when a party's merger deal gets topped by another suitor--to respond. Beyond determining how much higher MAR might like to go with its offer, the company needs to figure out how much of an additional cash component it might add. The original deal was $2/share. HOT climbs 4.4% premarket to $79.77, showing investors are betting on a bidding war, while MAR gains 1% to $72.50. Starwood (HOT) has deemed a raised $78/share, or $13.2B, buyout offer from a Chinese group led by Anbang Insurance to be superior to the largely stock deal the hotelier reached in November with rival Marriott (MAR). That firm now has through March 28--a longer timeline than is typical when a party's merger deal gets topped by another suitor--to respond. Beyond determining how much higher MAR might like to go with its offer, the company needs to figure out how much of an additional cash component it might add. The original deal was $2/share. HOT climbs 4.4% premarket to $79.77, showing investors are betting on a bidding war, while MAR gains 1% to $72.50.

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