Why Marriott Won’t Beat Anbang In Starwood Battle

In the ongoing bidding war between Marriott and Anbang Insurance over Starwood Hotels and Resorts, Marriott has one big disadvantage—it isn’t backed by the Chinese government.

Marriott’s offers are all based on stock value, and investors aren’t upholding that stock. Last week when the hotel giant upped its offer to $13.6B, its shares began to sink.

With its Chinese government backing, Anbang can take the longer-term view without worrying about day-to-day stock prices, Business Insider reports.

Of course, Anbang's government backing also means some extra complications for them, as US regulators could get involved, concerned by the Chinese government taking interest in such a massive US company.

Regardless, the Starwood merger saga continues. [BI]

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