Blackstone Group to buy Hilton for $26 billion

New York, July 4: US private equity firm Blackstone Group said it would buy Hilton Hotels Corp. for about billion cash.

Under terms of the deal, Blackstone will pay .50 for each Hilton share, a 32-percent premium over Tuesday's closing price.

The deal is expected to close during the fourth quarter of 2007 and was approved by Hilton's board of directors on Tuesday, the company said.

Blackstone, which raised .1 billion in an IPO late last month, said it intends to invest in the Hilton properties and brands globally to enhance and grow the business.

Blackstone already has a significant portfolio of hotel and resort properties, which includes more than 100,000 hotel rooms in the United States and Europe. Its properties include La Quinta Inns and LXR Luxury Resorts and Hotels.

Hilton's brands include Hilton, Conrad Hotels&Resorts, Doubletree, Embassy Suites, Hampton Inn, Hilton Garden Inn, Hilton Grand Vacations, Homewood Suites by Hilton, and The Waldorf-Astoria Collection.

Blackstone said it expects no significant divestitures as a result of the transaction.

Blackstone shares closed up 45 cents at .72 on the New York Stock Exchange on Tuesday. Hilton shares closed up New York, July 4: US private equity firm Blackstone Group said it would buy Hilton Hotels Corp. for about $26 billion cash.

Under terms of the deal, Blackstone will pay $47.50 for each Hilton share, a 32-percent premium over Tuesday's closing price.

The deal is expected to close during the fourth quarter of 2007 and was approved by Hilton's board of directors on Tuesday, the company said.

Blackstone, which raised $4.1 billion in an IPO late last month, said it intends to invest in the Hilton properties and brands globally to enhance and grow the business.

Blackstone already has a significant portfolio of hotel and resort properties, which includes more than 100,000 hotel rooms in the United States and Europe. Its properties include La Quinta Inns and LXR Luxury Resorts and Hotels.

Hilton's brands include Hilton, Conrad Hotels & Resorts, Doubletree, Embassy Suites, Hampton Inn, Hilton Garden Inn, Hilton Grand Vacations, Homewood Suites by Hilton, and The Waldorf-Astoria Collection.

Blackstone said it expects no significant divestitures as a result of the transaction.

Blackstone shares closed up 45 cents at $29.72 on the New York Stock Exchange on Tuesday. Hilton shares closed up $2.18 at $36.05 on the NYSE.

Reuters.18 at .05 on the NYSE.

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