Starwood Hotels & Resorts Worldwide Inc. said Monday it agreed to Marriott International Inc.'s revised buyout bid, which values Starwood at $13.6 billion. Starwood said Marriott's bid is a "superior proposal" compared to the previously-announced $13.2 billion bid it received from a group led by China's Anbang Insurance Group Co. Under terms of Marriott's new bid, each Starwood shareholder would received 0.80 Marriott shares and $21 a share in cash. Based on Friday's closing price of $73.16 for Marriott's stock, the bid values Starwood shares at $79.53 each. Marriott's previous bid was for 0.92 shares of its stock and $2 a share in cash. Starwood shareholders will also receive consideration in the form of Interval Leisure Group stock, currently valued at $5.83 per Starwood share, from the spinoff of Starwood's timeshare business and subsequent merger with Interval Leisure. "We are pleased that Marriott has recognized the value that Starwood brings to this merger and enhanced the consideration being paid to Starwood shareholders," said Starwood Chairman Bruce Duncan. Starwood's stock climbed 2.8% in premarket trade, while Marriott shares were still inactive.
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