Starwood Hotels’ Chinese Suitor Backs Out of Bidding
The bidding war for Starwood Hotels and Resorts has ended suddenly — and strangely.
喜达屋酒店及度假村国际集团(Starwood Hotels and Resorts)并购战突然莫名其妙地终结了。
The current high bidder for the hotel chain, a consortium led by the Anbang Insurance Group of China, withdrew its $14 billion offer on Thursday.
In a statement on Thursday, the consortium said: “We were attracted to the opportunity presented by Starwood because of its high-quality, leading global hotel brands, which met many of our acquisition criteria, including the ability to generate consistent, long-term returns over time. However, due to various market considerations, the consortium has determined not to proceed further.”
The statement did not identify what the market considerations were.
The withdrawal leaves Marriott International as the winner with its current $13.25 billion offer.
A combination of Marriott and Starwood, the operator of the Westin and Sheraton chains, would create the biggest hotel company in the world, with more than 5,500 owned or franchised hotels and 1.1 million rooms.
Even though Anbang had offered more money — its second bid was $82.75 a share in cash, as opposed to Marriott’s most recent offer of $77.94 in cash and stock, as of Thursday’s prices — investors and analysts had raised questions about whether the Chinese-led consortium could actually close on its offer.
The abrupt withdrawal of the offer raised new questions, including whether the insurer and its allies had run into issues with the financing for the deal.
The Anbang consortium included J. Christopher Flowers’ buyout firm, J. C. Flowers & Company, and the Primavera Capital Group, whose chairman, Fred Hu, is the former chairman of Goldman Sachs for China.
由安邦保险领衔的财团中包括了美国私募股权公司J.C.Flowers以及由前高盛（亚洲）(Goldman Sachs for Asia)董事长胡祖六所领导的春华资本集团(Primavera Capital Group)。
Anbang had initially sought to break up Starwood’s first deal with Marriott by offering $78 a share, a proposal that was fully documented.
The second bid by the Chinese insurer, by contrast, had several open questions. In a statement saying that Anbang’s second bid was “reasonably likely to lead to a ‘superior proposal,’” Starwood noted that the newer offer was nonbinding and that the two sides needed to hammer out “nonprice terms.”