The bidding battle for Starwood Hotels isn't over yet, TheStreet TV anchor Rhonda Schaffler reports.
NEW YORK (TheStreet) -- Starwood Hotels & Resorts Worldwide (HOT) stock is advancing by 2.35% to $84.06 in mid-morning trading on Monday, after the company received a revised takeover proposal from an investor group led by Chinese insurer Anbang for $82.75 per share, or about $14 billion.
The offer is the latest in a bidding war between Anbang and Marriott (MAR) for the hotel operator.
Marriott most recently proposed a cash-and-stock offer valued at $75.91 a share, or about $12.8 billion, based on Thursday's closing price.
Anbang's bid will likely lead to a "superior proposal" to Starwood's merger agreement with Marriott, Starwood said in a statement. This would allow Starwood to engage in discussions with and provide diligence information to the Anbang group.
Starwood has had a merger agreement with Marriott since November, and would owe the company a breakup fee of as much as $450 million and an additional $18 million for costs related to financing the deal if it chooses another suitor, the Wall Street Journal reports.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Starwood Hotels & Resorts' strengths such as its solid financial position based on a variety of debt and liquidity measures that we have evaluated outweigh the fact that the company has had somewhat weak growth in earnings per share.
You can view the full analysis from the report here: HOT
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.