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Anbang Won’t Be Acquiring Starwood After All

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Update (5:47pm): Anbang has confirmed that it has decided not to move forward with the acquisition. The consortium provided the following statement to TPG:

We were attracted to the opportunity presented by Starwood because of its high-quality, leading global hotel brands, which met many of our acquisition criteria, including the ability to generate consistent, long-term returns over time. However, due to various market considerations, the Consortium has determined not to proceed further. We thank the Starwood Board, management team and its advisors for their efforts and support throughout this process.

The Wall Street Journal and CNBC are reporting that Anbang has backed out of its proposed Starwood takeover, leaving Marriott as the current sole bidder. According to CNBC, Reuters has stated that Anbang proposed a higher bid on March 26, but did not follow through on its offer to acquire Starwood. Shares of Starwood have dropped 4% in after-hours trading, to 80.10 from a close of 83.43.

Interestingly, when Marriott confirmed the news that it would not be submitting a higher bid, the chain shared the following statement:

Starwood stockholders should give serious consideration to the question of whether the Anbang-led consortium will be able to close the proposed transaction, with a particular focus on the certainty of the consortium’s financing and the timing of any required regulatory approvals.

It seems that we won’t have to wait to see how this pans out when it comes to regulatory approvals after all.

It seems certain that Marriott's going to be acquiring Starwood — for real this time.
It seems certain that Marriott’s going to be acquiring Starwood — for real this time.

For a recap of the Starwood saga to date, see the posts below:

May 1, 2015 — Rumors of IHG preparing a bid to acquire Starwood
October 28, 2015 — Starwood CEO Adam Aron mentions the possibility of a sale during an earnings call
November 16, 2015 — Marriott announces its intention to acquire Starwood
November 20, 2015 — Marriott CEO Arne Sorenson addresses questions about Marriott and SPG
January 22, 2016 — TPG chatted SPG with Marriott’s Vice President of Loyalty
February 24, 2016 — TPG shares plans to attend a Marriott loyalty forum in Los Angeles
March 14, 2016 — Starwood and Marriott acknowledge Anbang’s bid
March 18, 2016 — Starwood accepts Anbang’s bid
March 18, 2016 — Starwood CEO Tom Mangas addresses the latest acquisition news
March 21, 2016 — Marriott Outbids Anbang with Latest Offer for Starwood
March 22, 2016 — Here’s What Marriott Plans to Do with Starwood Preferred Guest
March 28, 2016 — Anbang Submits a New Bid for Starwood Hotels
March 28, 2016 — Marriott Isn’t Submitting a Higher Bid for Starwood Hotels

Thanks to TPG reader David C., who shared this news tip by emailing tpgtips@thepointsguy.com. We’ll be sending out a $200 Visa gift card as a token of our appreciation.

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