Jul 04 2007
Today marks the Independence Day for the people of United States of America. And to celebrate the big day (coincidence or not), Hilton Hotels Corp. has agreed to an all-cash buyout from The Blackstone Group LP in a $20.1 billion deal that would instantly make Blackstone the world’s largest hotel owner.
The private equity group said it would combine cash from its real estate and corporate private equity funds to buy all outstanding Hilton shares for $47.50 each, a 32 percent premium over Tuesday’s closing stock price. The acquisition would take Beverly Hills-based Hilton Hotels private and boost Blackstone’s portfolio of lodging properties. Blackstone owns more than 100,000 hotel rooms in the United States and Europe. On the other hand, Hilton Hotels owns or operates 2,800 hotels and 480,000 rooms in 76 countries.
Hilton has been expanding aggressively since 2005, when it bought Britain’s Hilton Group PLC for $5.7 billion cash, reuniting two brands that split in the 1960s. The deal allowed Hilton, which had been limited to properties in the U.S. and Canada, to become a global player. In 2006, Hilton’s revenue nearly doubled to $8.16 billion, and net income climbed 24 percent.
FinanceTwitter would like to take this opportunity to wish all American readers a “Happy Fourth of July”. May God bless America and FinanceTwitter’s trading portfolio.
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July 4th, 2007 by financetwitter
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