Sheraton-owner Starwood accepts higher offer from Marriott

Tuesday, 22 March 2016 01:20 - - {{hitsCtrl.values.hits}}

REUTERS: Marriott International Inc said it made a higher offer for Starwood Hotels and Resorts Worldwide Inc that was accepted by the owner of the Sheraton and Westin hotel brands.

The new stock-and-cash offer is worth $ 79.53 per share, or $ 13.6 billion, and tops an all-cash $ 78 per share, or $ 13.16 billion, offer from a group led by China’s Anbang Insurance Group Co.

The Marriott-Starwood deal will create the world’s largest hotel chain with top brands including Sheraton, Ritz Carlton and the Autograph Collection. Marriott in November offered $ 12.2 billion, or $ 72.08 per, for Starwood.

Starwood shareholders will receive $ 21.00 in cash and 0.80 shares of Marriott Class A common stock for each share of Starwood common stock, Marriott said.

Starwood shares were trading at $ 82.72 before the opening bell. Marriott was slightly down at $ 72.00.

Under the revised agreement, Starwood will pay a breakup fee of $ 450 million, up from $ 400 million previously.

Starwood Chairman Bruce Duncan said the company was pleased that Marriott has “recognised the value” that Starwood brings to this merger.