 The Hilton name has been two separate businesses since 1964 |
UK leisure firm Hilton Group has confirmed it is in talks with US near namesake Hilton Hotels Corporation about the sale of its hotel business. The companies are separate concerns, with Hilton Hotels Corporation running Hilton hotels in the US, while Hilton Group owns those outside America.
Hilton Group said talks were going on, but cautioned that the deal was not yet completed.
Shares in Hilton closed 13.3% higher at 345.50 pence on Friday.
"The board confirms that it has received an indicative offer from Hilton Hotels Corporation, which it is currently evaluating," Hilton Group said in a statement.
Analysts have valued the London-based Hilton's 400-plus hotels at around �3.2bn-�3.4bn.
The firms have been separate since 1964 when Hilton Hotels Corporation split off its non-American business.
Long lost cousins
Ladbrokes bought the Hilton business outside the US in 1987, and changed its name to Hilton in 1999.
 |  US hotel operators are looking to come to Europe to diversify their income streams  |
Back in the 1990s, the two companies agreed to share marketing, reservations and loyalty card programmes. Because of their close ties, analysts do not expect a counter bid.
Hilton Group has more than 400 hotels under the Hilton and Scandic brands, and also owns the Ladbrokes gambling company.
Hilton Hotels Corporation owns, manages or franchises more than 2,300 hotels.
"This is a great deal if it comes to fruition. It confirms our view that the US hotel operators are looking to come to Europe to diversify their income streams and it makes InterContinental vulnerable," said analysts at ABN Amro.
Other US hotelier rumoured to be on the prowl include Marriott International and Starwood Hotels & Resorts Worldwide.
With this in mind, InterContinental Hotels, the world's largest hotelier, saw its shares up 6.1% to 731.5 pence on Friday.
One-Minute World News 
News services
E-mail this to a friend 
Printable version 
