Hilton Hotels Corp. has agreed to be
acquired by the Blackstone Group, in an all-cash transaction valued
at approximately $26 billion, the companies said Tuesday.
it would acquire all of the outstanding common stock of Hilton for
$47.50 per share, a 40% premium over Hilton's July 2 closing price
of $33.87 per share.
global private equity firm, began trading on the New York Stock
Exchange on June 22. The company has been involved in several large
travel company acquisitions over the years; it currently owns
Travelport, the La Quinta Corp. and LXR Luxury Resorts, and it
recently sold the Extended Stay Hotels and Budgetel brands. In 2005
it sold the management and franchise business of the Wyndham chain
for $101 million.
portfolio includes nine hotel and hospitality brands, among them
Hilton, Conrad Hotels, Embassy Suites Hotels and the
Waldorf-Astoria Collection. In 2006 it was the fifth-largest hotel
company by number of rooms, at 393,922, and the sixth-largest by
number of hotels, at 2,460, according to data from the American
Hotel and Lodging Association.
Hilton's board of
directors approved the transaction on July 3. Pending shareholder
approval, the deal is expected to close in the fourth
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