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Hilton talks to analysts
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February 3, 1997: 8:58 p.m. ET
Executives from Hilton speak only in broad strokes about ITT proposal
From Correspondent Rhonda Schaffler
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NEW YORK (CNNfn) -- One week after Hilton shocked Wall Street with its stunning $6.5 billion bid for rival ITT, the company spoke to a gathering of gaming and lodging analysts in New York City. Hilton executives said ITT would fit into Hilton's goal to boost earnings growth and buy up "full-service hotels."
Hilton would not answer specific questions about its offer for ITT. Some analysts believe Hilton will have to top its initial $55.00 a share bid, but most are already sold on the combination.
"It's in ITT's boards interest and management's interest to do what's right for the ITT shareholder. I think that's what they're evaluating right now and I think that should be the main interest of all parties," said Michael Mueller, a lodging analyst with Montgomery Securities.
But it's becoming increasingly clear that ITT Chairman Rand Araskog is ready to fight. Over the weekend, Araskog rejected an offer from Hilton CEO Steve Bollenback to meet and discuss the bid.
Jeff Taylor, an equity analyst with Taylor Capital Management, said, "from what I've heard on the street, from the analysts I've talked to and the CEO's I've talked to, it's not likely, it's not likely to happen."
…Which means it's more likely that Hilton will take its offer directly to shareholders.
In the meantime, Hilton is not limiting its sights to ITT and says it would consider buying other hotel properties.
"There are lots of companies out there, private and public, and there are also portfolios out there that could get acquired but this would be a great deal for Hilton," said Marc Halle, a real estate analyst with Evergreen Asset Management.
Hilton would not say what next step it would take in its efforts to secure that "great deal."
The next word may come from ITT…the company holds a regularly scheduled board meeting on Tuesday, and the Hilton bid is expected to be discussed.
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