Three Chinese firms eye Starwood global takeover

BEIJING - In what could be the largest-ever Chinese takeover of a US company, three Chinese businesses are planning to bid for the US hotel chain operator Starwood Hotels & Resorts Worldwide Inc, which operates the Sheraton, Westin and W hotel chains.

The China Daily reports that hotel giant Shanghai Jin Jiang International Hotels (Group) Co Ltd, Hainan Airlines’s parent company HNA Group and sovereign wealth fund China Investment Corp are all in the mix to bid; If successful, the bid would potentially top Shuanghui’s 2013 acquisition of US pork producer Smithfield Foods, Inc. for US$7 billion.

These bids are not far behind Beijing-based Anbang Insurance Group Co’s acquisition of the landmark Manhattan hotel Waldorf Astoria from Hilton Hotels & Resorts for US$1.95 billion in 2014.

In response to the news, Starwood shares on Tuesday jumped 9.1% to close at US$ 74.81 per share, the company’s largest daily increase since 2009, taking its market value close to US$12 billion. All companies involved in the potential bid have declined to comment. www.webershandwick.cn (ATI).