China's Anbang raises offer for Starwood to $14 billion

Beijing: China`s Anbang Insurance Group Co has raised its offer for Starwood Hotels & Resorts Worldwide Inc to almost $14 billion, in its latest challenge to the U.S. hotel operator`s merger with Marriott International Inc.

The bidding war for Starwood has pitted Marriott`s ambitions to create the world`s largest lodging company with about 5,700 hotels against Anbang`s drive to create a vast investment portfolio of high-yielding U.S. real estate assets.

The acquisition of Starwood by Anbang would be the largest ever by a Chinese company in the United States.

Anbang`s consortium, which includes private equity firms J.C. Flowers & Co and Primavera Capital Ltd, had offered $82.75 per share in cash, in what is reasonably likely to lead to a proposal that is superior to the deal with Marriott, Starwood said on Monday. Reuters had reported earlier on Monday that Anbang had raised its offer.

Marriott`s latest cash-and-stock offer, which was announced on March 21, is currently worth around $78 per share. Starwood`s board has not yet changed its recommendation to its shareholders in support of the company`s merger with Marriott, Starwood said