According to Starwood Hotels & Resorts Worldwide, the consortium consisting of Anbang Insurance Group Co., J.C. Flowers & Co. and Primavera Capital Ltd., citing market conditions, has withdrawn its nonbinding proposal to acquire all of the outstanding shares of common stock of Starwood for $82.75 per share in cash and does not intend to make another proposal.
Starwood's board of directors continues to unanimously support the intended merger with Marriott International, which has been in negotiations for several months. The current deal pays Starwood shareholders $77.94 per share, making their agreement worth $13.3 billion; adding in proceeds from a spin-off deal for Starwood's timeshare business, the total for the transaction reaches about $14 billion.
Arne Sorenson, president and CEO of Marriott, said in a statement, "We are focused on maximizing shareholder value, and from the beginning of this process we have been steadfast in our belief that a combination with Starwood will offer the highest value to all shareholders. Our integration teams have been diligent in their work over the last few weeks and are more committed than ever to a timely and smooth transition."
Thomas B. Mangas, CEO of Starwood, added, "We are excited to be part of the world's largest hotel company with an unparalleled platform for global growth. The existing merger agreement provides substantial value to our stockholders through significant upfront cash consideration and long-term upside potential from projected shared synergies, including $250 million in cost synergies and significant revenue synergies, as well as ownership in one of the world's most respected companies."
Both Marriott and Starwood have scheduled stockholders' meetings for April 8 to vote on the merger.