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UK Hilton in talks to sell hotels to Hilton Corp

October 14, 2005 |

British hotels and gambling company Hilton Group Plc on Friday confirmed it is in talks to sell its hotels to U.S. Hilton Hotels Corp which could reunite the global Hilton name under one owner.

British hotels and gambling company Hilton Group Plc on Friday confirmed it is in talks to sell its hotels to U.S. Hilton Hotels Corp which could reunite the global Hilton name under one owner.

“The board confirms that it has received an indicative offer from Hilton Hotels Corporation, which it is currently evaluating. Discussions are ongoing and subject to the resolution of a number of issues,” Hilton Group said in a statement.

Sources close to the deal said the U.S. Hilton is in advanced talks to buy the UK group’s 400-plus Hilton and Scandic hotels for around 3.6 billion pounds ($6.3 billion) in cash with UK Hilton shareholders getting cash and continuing to own shares in a renamed Ladbrokes, Britain’s largest betting shop operator.

The Hilton business split in 1964 with the U.S. Hilton running all Hilton hotels in the United States and the UK company operating the brand elsewhere. The two share an alliance to cover joint marketing, reservation and loyalty programmes and have for a number of years discussed a merger.

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