China's Anbang Insurance Group Co is abandoning its bid for Starwood Hotels & Resorts Worldwide Inc (HOT.N), people familiar with the matter said, paving the way for Marriott International Inc (MAR.O) to buy the Sheraton and Westin hotels operator.
Anbang did not give a reason for walking away from the deal and the company did not follow through on its March 26 proposal to make the offer binding, the people said on Thursday.
Starwood said on Monday that Anbang had raised its offer to almost $14 billion.
Starwood's shares fell 4.4 percent to $79.80 in extended trading on Thursday, while Marriott shares fell 4.9 percent to $67.68.
Starwood's acquisition by Marriott will create the world's largest lodging company with about 5,700 hotels.
Starwood's shareholders are scheduled to vote on the Marriott deal on April 8.
(Reporting by Ramkumar Iyer in Bengaluru; Editing by Kirti Pandey)
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Updated Date: Apr 01, 2016 02:30 AM