A Chinese insurer, Anbang Insurance Group, was little-known before it acquired New York’s iconic Waldorf Astoria for $1.95 billion in 2015—the largest acquisition of a U.S. real estate asset by a Chinese buyer.
And the company has continued its buying spree by making two new bids that aim to expand its real-estate empire in the United States.
A consortium led by Anbang made a $12.8 billion bid for Starwood Hotels & Resorts Worldwide Inc. (HOT) on March 10, offering $76 a share in cash. This tops Marriott’s earlier bid of $63.74 (in cash and stock) and has a potential to derail the rival’s takeover plan.
Starwood has nearly 1,300 properties in 100 countries and owns famous brands like St. Regis, W, Westin, and Sheraton.
The offer implies a premium of 7.9 percent to Starwood’s closing price on March 11. Starwood’s shares rose after the company’s press release on March 14, disclosing the details of the unsolicited bid.
“Starwood has received a waiver from Marriott enabling it to engage in discussions with the Consortium in connection with its proposal,” said the company in its press release. Starwood entered discussions with the consortium on March 11 and the Marriott waiver will expire on March 17, according to the press release.
