The Wall Street Journal: In surprise, Anbang pulls out of Starwood deal

China’s Anbang Insurance Group Co. has informed Starwood Hotels & Resorts Worldwide Inc. that it is withdrawing its $14 billion bid for the hotelier, according to people familiar with the matter.

The surprise move comes as Anbang appeared close to securing Starwood’s agreement for a deal that would have trumped an earlier merger pact between Marriott International Inc. and Starwood, the people said. Starwood now plans to revert to Marriott’s most recent offer, which valued Starwood at $13.6 billion at the time of the offer, according to one of the people.

Last November, Marriott signed a $12.2 billion deal for Stamford, Conn.-based Starwood, which has popular brands including Sheraton, W Hotels, St. Regis and Westin.

Shares of Starwood HOT, -0.27%   fell 4.2% to $79.90 in after-hours trading, while Marriott MAR, -0.52%   shares declined 5.1% to $67.55.

Under Marriott’s most recent offer, Starwood shareholders would receive $21 in cash and 0.8 Marriott shares for each Starwood share. Based on the 4 p.m. ET closing prices, the deal valued Starwood at $77.94 a share, or about $13.21 billion.

An expanded version of this report appears on WSJ.com.

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