Starwood's Stock Surges After Receipt Of 'superior' Buyout Bid Than Marriott's Deal

Starwood Hotels & Resorts Worldwide Inc.'s stock surged 4.7% in premarket trade Friday, after the hotel operator said it plans to terminate the deal to be bought by Marriott International Inc. , after determining that a new unsolicited bid by a consortium of companies, including China's Anbang Insurance Group Co. Ltd., was a "superior proposal." Starwood said it received a new bid of $78 a share in cash, up from the previous bid of $76 a share, from the consortium, which also includes J.C. Flowers & Co. and Primavera Capital Ltd. At Thursday's closing prices, the cash and stock deal with Marriott would have valued Starwood shares at $68.06 each. Marriott has the right to negotiate a revision of the current deal until 11:59 p.m. Eastern on March 28. Marriott's stock gained 1% ahead of the open.