Anbang Ends Starwood Hotels (HOT) Bidding War - Report

(Updated - March 31, 2016 4:32 PM EDT)

Chinese insurance company, Anbang, is walking away from its proposed takeover of Starwood Hotels (NYSE: HOT).

The news comes weeks after Anbang launched an unsolicited takeover offer for Starwood to break-up the hotel company's pending merger with U.S.-rival Marriott International, Inc. (NASDAQ: MAR).

Anbang initially offered $76.00 per share in cash for Starwood but recently raised its offer to $82.75 per share, which Starwood determined could lead to a “Superior Proposal."

Marriott has also raised its offer for Starwood amid the competing bid, although it still remained less valuable versus the latest Anbang offer. Under the terms of Marriott's latest offer, Starwood shareholders will receive $21.00 in cash and 0.80 shares of Marriott International.

It is unclear if antitrust concerns led to Anbang walking away.

In a statement on the cancelled offer, Anbang said, "due various market considerations, the Consortium has determined not to proceed further."

Starwood dropped 3.9% in after-hours trading Thursday, while Marriott fell 5%.

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