Anbang Starwood, $13.2B Takeover Offer

© Mark Lennihan AP

Starwood dumps Marriott deal for competing bid - Starwood Hotels and Resorts said Friday that it is dumping a previous deal to sell itself to Marriott International after a different group of investors made a better offer — but that it will give Marriott a chance to improve its bid before finalizing the sale.

Starwood disclosed that China-based Anbang Insurance, U.S. private equity firm J.C. Flowers & Co. and China-based investors Primavera Capital Limited had offered $78 per share — more than Marriott's offer of $65.33.

Marriott had trumpeted its bid to become the largest hotel company in the world by acquiring the owner of brands such as W Hotels, St. Regis, Westin and Aloft. But the competing offer for Starwood presents a serious threat to that goal.

Starwood said it had deemed the new offer a "superior proposal" and that Marriott can make a new offer through March 28.

"Starwood will negotiate in good faith with Marriott during this period, and the Starwood Board will consider in good faith any changes to the Marriott agreement that Marriott may propose during this period," Starwood said in a statement.

Marriott signaled that it would likely make a new offer, saying it "continues to believe that a combination of Marriott and Starwood is the best course for both companies" and that it is "carefully considering its alternatives."

If Starwood accepts the Anbang investor group offer, it will be required to pay a $400 million termination fee to Marriott.