by Donald Wood
Last updated: 1:45 PM ET, Mon March 28, 2016
Photo courtesy of Thinkstock
China's Anbang Insurance Group has reportedly raised its offer for Starwood Hotels & Resorts Worldwide, adding as much as another $1 billion to an offer it made last week. Starwood considered the previous offer superior to a pending merger with Marriott, but Marriott was able to counter with an amended merger agreement. Now, acccording to a report from Reuters, the bidding war between Anbang Insurance Group and Marriott International continues as the Chinese company has increased its offer to an astounding total of almost $14 billion.
In response, Marriott International released an official statement reaffirming the company's commitment to purchasing the Starwood brand. Officials from the hotel brand have stated that the most recent amended merger agreement is the best course of action for stockholders, and the current offer should be enough to entice Starwood authorities into closing the deal with Marriott.
READ MORE: Chinese Insurance Group to Purchase Strategic Hotels for $6.5 Billion
Marriott's goal in acquiring Starwood would be to create the world's largest lodging company with about 5,700 hotels under its banner. On the other hand, Anbang Insurance Group would increase its portfolio of real estate assets in the United States, which would make it the largest acquisition by a Chinese company in America.
READ MORE: Government Officials Reportedly Avoiding Anbang-Owned Waldorf Astoria New York
The Anbang Insurance Group and its partners have offered $82.75 per share in cash for the Starwood brands, a proposal that would likely surpass the offer made by Marriott. The current amended agreement from Marriott is offering around $78 per share.
Starwood's board of directors has not yet changed its recommendation to its shareholders in support of the company's merger with Marriott, but the company is currently evaluating the offer from the Anbang Insurance Group.
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