Chinese offer threatens Marriott’s Starwood deal

China’s Anbang group has already invested in top hotels
A consortium led by China’s Anbang Insurance Group has made an estimated US$13 billion offer for Starwood Hotels & Resorts Worldwide, in an attempt to upset the much-publicised pending $12.2 billion offer made by Marriott International in November last year.
The unsolicited rival bid by Anbang, whose partners include Primavera Capital Group and J.C. Flowers & Co., values Starwood’s shares at $76 each, an amount carrying a 7.9% premium over Marriott’s offer.
Starwood will be obligated to give Marriott $400 million in termination fees if it was to retract from the existing deal, a small price to pay for the substantially bigger offer at hand.
Marriott said in a statement released yesterday that they were committed to the original proposal, belaying fears of a bidding war. Shareholders of Starwood and Marriott are scheduled to vote on the deal on March 28, less than two weeks from now.
This is not the first time that fast-growing, Beijing-based Anbang is making large-scale foreign investments. It had just agreed to a $6.5 billion purchase of US-based hotel owner Strategic Hotels & Resorts from Blackstone Group. It also bought the Waldorf Astoria in Manhattan, New York, for almost $2 billion less than two years ago.
TTG Asia