Sheraton-owner Starwood accepts higher offer

Marriott International said it made a higher offer for Starwood Hotels and Resorts Worldwide 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.

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.

Reuters