STAMFORD, Conn. — Just a few short days after a Chinese investment group tried to circumvent Marriott’s planned acquisition by making a buy-out offer to Starwood Hotels & Resorts Worldwide, Inc., the Stamford, Conn.-based company received another revised, binding and fully financed superior proposal from the consortium.
Unless Marriott submits a counterproposal by March 28, Starwood’s Board of Directors will go ahead and terminate its $12.2 billion merger agreement. “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,” reads a press release issued this morning.
Starwood can’t terminate the Marriott agreement and accept the consortium’s offer unless Starwood’s Board determines that the consortium’s offer continues to be a superior proposal once the negotiation period with Marriott has concluded, and taking into account any revisions to the existing Marriott agreement that are proposed by Marriott during this period. The consortium, which comprises Anbang Insurance Group Co., Ltd., J.C. Flowers & Co. and Primavera Capital Limited, has confirmed that its offer will remain outstanding until the expiration of Marriott’s negotiation period.