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Anbang ups offer for Starwood to $14m

Sheraton hotel

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Starwood owns several hotel brands, including Sheraton,

Chinese insurance firm Anbang has raised its offer for Starwood Hotels to $14m (£9.8m), extending a bidding war with Marriott for the group.

Last week, Marriott appeared to have outbid Anbang with a $13.6m offer that gained support from Starwood’s board.

In a statement, Starwood’s board said the new offer was “likely to lead to a ‘superior proposal”.

The board though, has not changed its recommendation in favour of a merger with Marriott.

Starwood owns several hotel brands, including Sheraton, Westin and St Regis.

Under the terms of its agreement with Marroitt, Starwood’s board can discuss and provide information to bidders that make superior bids.

But under its latest merger agreement with Marriott, Starwood would have to pay a breakup fee to Marriott of $450m if it decides to accept another offer.

Anbang, whose consortium includes private equity firms JC Flowers & Co and Primavera Capital, has been making a push into the US market over the last several year.

It bought the Waldorf Astoria hotel in New York in 2014.

Starwood’s shares rose 2.4% on Monday on the latest news.

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