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 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
iJobs Money & Business
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...
$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...
Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...
Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...