The management of the company that owns Sheraton and Westin hotels has rebuffed a takeover offer from Marriott in favour of an even better one from Chinese company Anbang.
Starwood Hotels is calling off a $12.2 billion deal with Marriott in favour of an better 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 US.
Anbang's offer of $78 a share came a few months after Marriott bid of $76 for the chain in a deal that would have created the world's largest collections of hotels.
Starwood owns 82 hotels across Canada. Marriott has 141 hotels across Canada.
Starwood will pay a $400-million break fee to Marriott 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 five per cent on the NYSE.