In light of Chinese insurer Anbang’s unsolicited $12.8 billion bid for Starwood Hotels & Resorts, some analysts are predicting that Marriott, who originally won the bid to merge with Starwood, will moderately increase its offer to ensure the deal is made. If the company ups the offer by $200 million, it would equal Anbang’s offer, says Travel Weekly. J.P. Morgan analyst Joseph Greff wrote to clients that he would not be surprised if Anbang ultimately wins Starwood’s owned assets, while Marriott gains Starwood’s management and franchise businesses. However, other analysts say there could be hurdles for Anbang to overcome before such a deal occurs. Anbang’s possible acquisition of Strategic Hotels & Resorts could complicate the Starwood deal, as the company would own several hotel brands under Starwood, and flags owned by companies like Marriott under Strategic. Anbang could also face regulatory obstacles, as it must get approval from the Chinese government to get its capital overseas. To read more, click here.
