A consortium led by China's Anbang Insurance Group will walk away from its proposed takeover of Starwood Hotels worth almost $14 billion, the group said in a statement Thursday.
Starwood shares fell about 4 percent in after-hours trading, and Marriott, which had competed against the consortium for Starwood, also saw its shares drop about 4 percent in after-hours action. In its official statement, the consortium cited "market considerations" as the reason it walked away from the table.
"We were attracted to the opportunity presented by Starwood because of its high-quality, leading global hotel brands, which met many of our acquisition criteria, including the ability to generate consistent, long-term returns over time," the consortium said. "However, due to various market considerations, the consortium has determined not to proceed further. We thank the Starwood board, management team and its advisors for their efforts and support throughout this process."
Anbang had fired the latest shot in the bidding war, offering $14 billion for Starwood against Marriott's $13.6 billion proposal. Just two days ago, David Loeb, a senior research analyst at Robert W. Baird, told CNBC he did not think Marriott would sweeten its offer, and Starwood shareholders likely preferred Anbang's all-cash deal.
Starwood did not immediately respond to a request for comment.