China’s Anbang has the money for foreign deals, its chairman insists
Insurer “has assets that far exceed 1 trillion yuan,” says Wu Xiaohui, whose firm aims to buy Starwood Hotels and Resorts
(From Caixin Online)
By New York correspondent Li Xiaoxiao and staff reporter Ding Feng
(New York and Beijing) – The chairman of Anbang Insurance Group says it has more than enough capital to fund its overseas investment, comments that come shortly after the insurer raised its bid for a U.S. hotel giant, a move Chinese regulatory officials oppose.
Starwood Hotels and Resorts Worldwide Inc., which owns the Sheraton and Westin brands, had said it had accepted a sweetened offer from Marriott International Inc. for US$ 13.6 billion in cash and stock.
Then it said on March 28 the Anbang-led consortium raised its bid again, to nearly US$ 14 billion, all in cash.
Starwood said the new offer is “reasonably likely” to trump Marriott’s, even though backing out of its preliminary agreement with the latter would cost it US$ 400 million in penalties. Read more