Starwood Hotels & Resorts shares spiked amid reports that at least three big Chinese companies are vying for a bid to buy the hotel firm.
Shares of the hotel company jumped as much as 12.5 percent to $77.10 a share.
Shanghai Jin Jiang International Hotels, HNA Group, and China Investment, have each presented a proposal to the Chinese government over the past two months, people with knowledge of the discussions told Dow Jones.
According to Dealogic, this sets the stage for what could be the largest Chinese acquisition of a U.S. company.
However, American hoteliers aren't unfamiliar with this type of deal. Chinese insurance group, Anbang, paid nearly $2 billion this year for the Waldorf Astoria hotel on New York's Park Avenue. This deal marked a record sales price for a U.S. hotel. Another Chinese insurer paid more than $2 million a room for New York's Baccarat Hotel. That price was an all-time high on a per-room basis.
Earlier this month, Reuters reported that cruise operator Carnival was planning to launch a Chinese cruise line in a $4 billion joint venture with two Chinese firms.