Announcement

**donsaeid** · 07-03-2007, 10:00 PM

PRIVATE equity giant Blackstone Group will purchase Hilton Hotels Corp for about $US26 billion ($30.37 billion).

Under the terms of the agreement, Blackstone will acquire all the outstanding common stock of Hilton for $US47.50 dollars a share.

The price represents a premium of 40 per cent over Monday's closing stock price.

Hilton Hotels stock closed up 6.44 per cent yesterday on the New York Stock Exchange at $US36.05.

Hilton's board of directors approved the transaction yesterday. It would be completed sometime during the fourth quarter of 2007, subject to the approval of Hilton's shareholders, the corporation said in a statement.

The proposed transaction "will deliver substantial value creation for our shareholders. In addition, a majority of the equity will be owned by Canadians", BCE chairman Richard Currie said.

When completed, the merger will be one of the 10 biggest by an investment fund. The largest was announced on Saturday by Canadian pension fund Teachers, which bought Canadian telecoms giant BCE (Bell Canada) for $US48.5 billion dollars.

Blackstone intends to invest in the Hilton properties and brands globally to enhance and grow the business for the benefit of owners, franchisees and customers, Hilton said.

"Our priority has always been to maximize shareholder value. Our board of directors concluded that this transaction provides compelling value for our shareholders with a significant premium," Hilton co-chairman and chief executive Stephen Bollenbach said.

"We are delighted that a company with the resources and reputation of Blackstone fully appreciates the value inherent in our global presence."

"This transaction is about building the premier global hospitality business," Blackstone senior managing director Jonathan Gray said.

"We are committed to investing in the company and working with Hilton's outstanding owners and franchisees to continue to grow and enhance the business."

The acquisition brings together a leading global hospitality company with Blackstone's extensive portfolio of hotels and resorts.

Blackstone in January 2006 acquired La Quinta Inns and Suites and currently owns more than 100,000 hotel rooms in the US and Europe.

Blackstone's holdings complement Hilton's unparalleled family of brands, which include Hilton, Conrad Hotels & Resorts, Doubletree, Embassy Suites, Hampton Inn, Hilton Garden Inn, Hilton Grand Vacations, Homewood Suites by Hilton, and The WaldorfqcAstoria Collection.

Blackstone launched its initial public offering (IPO) on June 22. At $US4.13 billion, the partial IPO was one of the biggest in five years.

Blackstone's step into the public limelight marked a sea change for an industry that had closely guarded its secrecy. Blackstone was previously a wholly private partnership and as such under US laws not subject to the same scrutiny as public corporations.

The IPO launch and the deal with Hilton Hotels mark a heady year for Blackstone. In February, it won a $US39-billion contest to buy the largest US office management firm, Equity Office Properties Trust.

**abadani69** · 07-04-2007, 04:43 PM

Black Stone is a big company. They bought La Quintas 2 years ago and now the bought Hiltons. I am wondering if they will buy Marriotts Next. They are rich, but they are cheap. They cut people's hours and they want the job gets done perfectly.

IQ · 07-04-2007, 09:03 PM

that's how they are rich

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