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China mine workers detained after wages protest: locals
by Staff Writers
Beijing (AFP) March 18, 2016


Starwood Hotels dumps Marriott for raised Chinese bid
New York (AFP) March 18, 2016 - Starwood Hotels said Friday that it favors a takeover bid from a consortium led by China's Anbang Insurance over an earlier deal with Marriott, after the Anbang group increased its offer.

Starwood's board was persuaded by Anbang's $2 increase in its Monday offer to $78 a share, and said it plans to notify Marriott International that their already agreed merger was off.

Starwood had agreed to Marriott's $63.74 per share cash-and-stock offer last November for its network of 1,270 properties in 100 countries, including the Westin, Sheraton, Le Meridien and W brands.

But the Chinese giant stepped in the way this week as it announced nearly $20 billion in two proposed hotel takeover deals.

The Anbang proposal values Starwood at $13.2 billion and comes as the Chinese giant has also agreed to buy a portfolio of 16 luxury hotel and resort properties from the Blackstone group for $6.5 billion.

With the new Anbang offer, Starwood's board said in a statement that it "intends to terminate the Marriott merger agreement and enter into a definitive agreement with the consortium."

The news pushed Starwood shares up 4.5 percent to $79.91 in early trade. Shares of Marriott, which will earn a $400 million fee for Starwood cancelling their deal, rose 2.0 percent to $73.23. Anbang is privately controlled.

Anbang's partners in the deal include China-based Primavera Capital and US private equity investor JC Flowers & Co.

Anbang first pushed into the US hospitality industry in October 2014 by acquiring the famous Waldorf Astoria Hotel in Manhattan for nearly $2 billion from Hilton Worldwide Holdings.

The purchases are part of an aggressive international push by the 12-year-old insurer, which reports assets of 1.65 trillion yuan ($254 billion), more than 3,000 branches in China and over 30,000 employees globally.

In November, Anbang bought US insurer Fidelity & Guaranty Life for $1.6 billion, after snapping up Korean insurer Tong Yang Life for around $950 million and Dutch insurer Vivat for about $167 million earlier in the year.

Chinese authorities have detained miners who mounted a large demonstration against unpaid wages, residents said Friday, as officials struggle to control labour protests fuelled by slowing economic growth.

Police have held more than 30 of the several thousand miners who marched through the northeastern city of Shuangyashan while on strike last weekend, a former mine company worker surnamed Gao told AFP.

China has vowed to cut some two million jobs in its coal and steel industries, which suffer from massive overcapacity. Slowing economic growth has also led to more strikes in construction and manufacturing.

The ruling Communist party tends to clamp down on all forms of public protest and organised strikes, which it sees as a challenge to its rule.

The demonstration which began on Saturday saw large crowds fill the streets, striking miners hold large banners demanding back pay, and police clashing with protesters.

Shuangyashan, like many other cities in the province of Heilongjiang, is heavily dependent on the coal industry.

Gao said that police detained about 30 people at the weekend, with an unspecified number of further detentions occurring this week.

A Shuangyashan mine worker surnamed Chen told AFP on Friday that his colleagues were still owed more than 60 percent of wages due between 2014 and 2015.

Workers who organised a strike had been detained, he said, adding: "The miners don't dare protest any more".

Both refused to give their full names for fear of reprisals.

"I will soon be detained myself," Chen said in a telephone call, to the sound of shouting in the background.

Police in Shuangyashan did not answer calls seeking comment from AFP.

Authorities in other parts of China have also reportedly clamped down. The city of Langzhong in Sichuan province, in the southwest, held a "public sentencing" for construction workers found guilty of "endangering public officials" during protests over unpaid wages, the state-run Beijing News reported.

Eight workers were sentenced to between six and eight months in jail at the ceremony on Wednesday, with pictures showing the suspects paraded on a state in front of a crowd, chaperoned by uniformed police and at least one gun-toting guard.


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