Hilton Hotels takeover
Posted on September 18, 2007
Filed Under Stocks |
Hilton Hotels Corp. [HLT-N] today reported that shareholders approved the company’s $20.1-billion (USD) sale to The Blackstone Group LP [BX-N].
Under the terms of the Hilton Hotels takeover/buyout, Blackstone will pay Hilton shareholders $47.50 per share in cash. Including assumed debt, the total deal is valued at $26-billion.
Shares of Hilton Hotels rose 14 cents to $46.12 during afternoon trading. Blackstone Group shares rose 23 cents to $23.88.
Blackstone Group LP [BX-N]
- Blackstone raised $4.1 billion in an initial public offering last month, the largest on Wall Street in five years.
- Beverly Hills-based Hilton Hotels operates more than 2,800 hotels in 76 countries. The company also manages or franchises brands such as the Hilton, Hampton Inn, Hilton Garden Inn and the Waldorf Astoria Collection.The company generated $8.11-billion in revenue last year.
- Blackstone already owns more than 100,000 hotel rooms in the U.S. and Europe under the La Quinta Inns and LXR Luxury Resorts and Hotels brands.
- On completion of the deal, Blackstone will become one of the largest hotel groups in the world.
In Canada, Hilton has dozens of properties, including a flagship hotel on Richmond St. in Toronto, and a popular Hilton Suites Markham Conference Centre and Spa.
“We certainly plan to grow and enhance the business, so things will stay more or less the same in Canada,” said John Ford, a spokesperson for Blackstone in New York.
Amid the current instabilities, I would still encourage one word: buy
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