NEW YORK — Starwood is calling of a $12.2 billion buyout agreement with Marriott in favour of an offer from a group of investors led by the Chinese insurance company Anbang.
The decision came after Anbang upped its offer for Starwood by nearly $370 million Friday, bringing the total deal to more than $14 billion.
Starwood, which owns the Sheraton and Westin hotel brands, has to pay Marriott $400 million to end the deal.
Marriott has until March 28 to make another offer. Marriott International Inc. said Friday that it still believes a combination with Starwood is best, and is considering its next step. Marriott first offered to buy Starwood in November.
Shares of Starwood Hotels & Resorts Worldwide Inc. rose more than 5 per cent before the stock market opened.
The Associated Press