Starwood Hotels (HOT) Receives Unsolicited Takeover Bid, Prefers Marriott (MAR) Acquisition

Starwood Hotels and Resorts Worldwide announced Monday it had received an unsolicited takeover bid from an investor group on March 10, valuing the hospitality company at $76 a share. Starwood began discussions with the investor group the following day.

If the deal goes through, it would upset the company’s plans to merge with Marriott International, which were announced on Nov. 16, 2015. Their merger, for which Marriott would pay $12.2 billion, would create the world’s largest hotel company. Starwood has received a waiver from Marriott to enter discussion with the investor group, but the waiver expires on Thursday, March 17.

For its part, Marriott reaffirmed its commitment to acquire Starwood Monday. The hospitality giant is confident that the previously announced merger arrangement is best for both groups. Marriott also noted that the unsolicited bid, led by Anbang Insurance Group — a Chinese company that already owns the Waldorf Astoria in New York — was conditional and non-binding.

Starwood also said Monday its board of directors was still recommending merger with Marriott.

Starwood shares were at $70.42 in the New York Stock Exchange at the close of trade Friday.