Hilton launches $6.5bn bid for ITT
Tuesday 28 January 1997
The unexpected offer was made in a telephone call from Hilton's chief executive officer, Stephen Bollenbach, to the management of ITT yesterday.
Hilton would expect to assume about $4bn in debt to conclude the buyout; the transaction would thus be worth a total of $10.5bn.
"The combination of ITT and Hilton would bring together two of the world's leading lodging companies as well as two premier gaming businesses," Mr Bollenbach said in a statement last night.
Eighteen months ago ITT undertook a giant demerger, separating its hospitality divisions from its other businesses such as insurance.
The new ITT that emerged, and which is now in Hilton's sights, includes Sheraton, the Caesar's World casinos chain and the Madison Square Garden arena in New York as well as New York sporting teams the Knicks and the Rangers.
Hilton said it was offering to buy all outstanding ITT shares.
It would pay $55 a share in in a two-phase transaction, in cash for the first half of the tender followed by a secondary offer worth the same amount paid for with Hilton common stock.
In a written bid, it indicated that it was also seeking an early meeting of ITT shareholders to vote on replacing its board of directors.
There was no immediate comment from ITT last night. For shareholders, however, it may be hard to resist.
The Hilton offer price would represent a 29 per cent premium on the current price of ITT shares, which closed last night off $1.125 at $42.625.
A combination of the two companies would result, meanwhile, in a hotel and gaming behemoth.
The Hilton group comprises 240 hotels with 100,000 rooms. It additionally operates 16 casinos, including the famed Flamingo in Las Vegas.
ITT has 415 hotels with 130,000 rooms and a collection of 14 casinos across the United States.
Hilton said that through a merger, it would be in a position to cut operating costs of the combined company by $100m a year.
- 1 Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
- 2 I might be an MP, but that doesn't stop me fighting sexism with my breasts
- 3 Google April Fools': company unveils backwards search engine and huggable digital assistant
- 4 April Fools' Day 2015: The best hoax news stories from around the internet
- 5 Gamers confess the worst things they've done in The Sims
University of Cambridge: Remains of 1,300 scholars are found under building
April Fools' Day 2015: The best hoax news stories from around the internet
April Fools' Day 2015 live: The best pranks and fake stories from around the world
Turkey power cut: Prime Minister says nationwide blackout could be caused by terrorists
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
The West has it totally wrong on Lee Kuan Yew
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
iJobs Money & Business
£20000 per annum + commission: SThree: Sthree have an exciting opportunity for...
£18000 - £32000 per annum: Recruitment Genius: A Telesales Executive is requir...
£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...