Chinese insurance company Anbang had to withdraw its $14 billion offer for Starwood because it could not prove it actually had the money. This may also signal the end of insane buying in foreign businesses and properties by Chinese in attempts to get money out of their country. Inquiring minds want to know why Chinese are so frantic to do so, even at the costs of spending too much. Hello Vancouver real estate. You may be about to have a nasty correction. But I digress. What does it say about a country and ts financial system when a supposedly huge insurance company makes big blustering offers and then has to admit it doesn’t have the money? Yes, I know, pot, kettle, black. But still…
Zero Hedge goes there:
Anbang unexpectedly pulled its Starwood offer, and for a very specific reason. According to the FT, an investor consortium led by China’s Anbang Insurance has lost the bidding war for Starwood Hotels & Resorts, after failing to demonstrate that it had the financing in place to back up its latest $14bn offer, according to a person directly involved.
We now know it had no financing in place whatsoever, and either it was the government that stepped in, or Starwood’s stakeholders said they do not accept suitcases full of recently laundered cash as a form of payment.