(Reuters) - China's Anbang Insurance Group Co is walking away from its proposed takeover of Starwood Hotels & Resorts Worldwide Inc , the operator of Sheraton and Westin hotels, a source familiar with the matter said.
Anbang had raised its offer for Starwood on Monday to almost $14 billion as it sought to challenge the U.S. hotel operator's merger with Marriott International Inc .
Starwood shares fell about 5 percent to $79.90 in extended trading on Thursday, while Marriott shares fell 4.8 percent to $67.74.
(Reporting by Ramkumar Iyer in Bengaluru; Editing by Kirti Pandey)