Anbang's Starwood Bid Likely to Undergo National Security Scrutiny

Special Situations, Content Strategist, Smartkarma

Crispin Francis

Special Situations, Content Strategist

Smartkarma

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<div>14 March 2016 - Anbang Insurance led consortium made a unsolicited non-binding bid for Starwood Hotels.  </div><div>Anbang's all cash offer for USD 76 per share and Starwood shareholders will get to keep the <strong>Additional Consideration</strong> in the form of Interval Leisure Group (“ILG”) common stock from the previously announced spin‐off of its vacation ownership business. The Additional Consideration is currently valued at <strong>approximately $5.50 per Starwood share.</strong></div><div> </div><div>Anbang Offer of USD 76 represents a <strong>19.2% premium</strong> over Marriotts on-going scrip &amp; cash offer which as an implied value of USD 63.74 based on Marriott's 20-day VWAP ending 11 March 2016, including the USD 2.00 per share consideration.</div><div><br>In addition, Starwood has received a waiver from Marriott, enabling talks with the Consortium till <span class="aBn" tabindex="0" data-term="goog_2065775005"><span class="aQJ">18 March 2016. </span></span></div><div> </div><div><span class="aBn" tabindex="0" data-term="goog_2065775005"><span class="aQJ"><em>In this insight, we examine the likelihood of Anbang's offer getting recommended and eventually becoming definite. We look at possible CFIUS concerns and discuss if it worth getting involved with Starwood at this stage.</em></span></span></div>

14 March 2016 - Anbang Insurance led consortium made a unsolicited non-binding bid for Starwood Hotels.  Anbang's all cash offer for USD 76 per share and Starwood shareholders will get to keep the Additional Consideration in the form of Interval Leisure Group (“ILG”) common stock from the previously announced spin‐off of its vacation ownership business. The Additional Consideration is currently valued at approximately $5.50 per Starwood share. Anbang Offer of USD 76 represents a 19.2% premium over Marriotts on-going scrip &amp; cash offer which as an implied value of USD 63.74 based on Marriott's 20-day VWAP ending 11 March 2016, including the USD 2.00 per share consideration. In addition, Starwood has received a waiver from Marriott, enabling talks with the Consortium till 18 March 2016.  In this insight, we examine the likelihood of Anbang's offer getting recommended and eventually becoming definite. We look at possible CFIUS concerns and discuss if it worth getting involved with Starwood at this stage.

Starwood Hotels & Resorts

The Star of the Show