Transparency issue cited in Anbang's exit
Chinese insurance conglomerate Anbang Insurance Group's withdrawal from the $14 billion bid to purchase US hotel chain operator Starwood Hotels and Resorts Worldwide Inc could highlight international wariness regarding the lack of transparency over the insurer's funding sources as well as the absence of a clear "game plan" regarding the acquisition, analysts said on Monday.
On March 31, Anbang abruptly withdrew its Starwood offer after raising its offering price three times, citing "various market considerations" as the reason for terminating the deal.
Anbang's sudden withdrawal caught Starwood and many industry experts by surprise, prompting speculation over the reasons and the insurer's motivation for ending the offer, which would have become the largest acquisition by a Chinese firm in the United States if successful.
