Chinese insurer Anbang withdraws bid for Starwood Hotels

Starwood Hotels & Resorts Worldwide (NYSE: HOT) announced Thursday that the consortium led by China's Anbang Insurance Group has withdrawn its bid.

The consortium consisting of Anbang Insurance Group Co., Ltd., J.C. Flowers & Co. and Primavera Capital Limited has informed Starwood that, as a result of market considerations, it has withdrawn its non-binding proposal to acquire all of the outstanding shares of common stock of Starwood for 82.75 dollars per share in cash and does not intend to make another proposal.

Starwood's Board of Directors continues to unanimously support the existing merger with Marriott International (NASDAQ: MAR), which will create the largest hospitality company in the world.

Thomas B. Mangas, chief executive officer said "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 dollars in cost synergies and significant revenue synergies, as well as ownership in one of the world's most respected companies."

Under the terms of the amended merger agreement, as announced on March 21, Starwood shareholders will receive 21 dollars in cash and 0.80 share of Marriott stock for each share of Starwood common stock. The transaction values Starwood at approximately 13.3 billion dollars. Starwood shareholders will own approximately 34 percent of the combined company's common stock after completion of the merger, based on current shares outstanding.

The special meeting of Starwood stockholders to vote on and approve the Marriott-Starwood merger agreement will be held as scheduled on April 8.