Chinese group Anbang has raised its offer to buy global Starwood chain to USD 14bn, thereby opening a another round of talks with Marriott. Marriott had previously reacted to Chinese pressure by improving its own offer to USD 13.6bn, leading many to assume the deal was completed. This most recent offer from the Chinese investor represents a price of USD 82.75 per Starwood share.
According to global media reports, Marriott has warned that it could charge Starwood a USD 450m penalty for breaking off merger talks, plus costs of the transaction. Observers point out, however, that the US giant could end up losing to the Chinese, despite the fact that the merger would generate around USD 250m in savings for Marriott. A higher valuation of Starwood, claim market watchers, would bring into doubt the profitability of the transaction for Marriott.
