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| Blackstone buys Hilton for $26bn | Blackstone buys Hilton for $26bn |
| (about 2 hours later) | |
| US private equity group Blackstone is buying the global Hilton Hotels chain for $26bn (£13bn) in an all-cash deal. | US private equity group Blackstone is buying the global Hilton Hotels chain for $26bn (£13bn) in an all-cash deal. |
| Under the deal, Blackstone is paying $47.50 for each Hilton Hotels Corporation share, a 32% premium over their closing price on Tuesday. | Under the deal, Blackstone is paying $47.50 for each Hilton Hotels Corporation share, a 32% premium over their closing price on Tuesday. |
| Blackstone said the deal had been approved by Hilton's board, and was due to be completed by the end of 2007. | Blackstone said the deal had been approved by Hilton's board, and was due to be completed by the end of 2007. |
| The surprise announcement comes two weeks after Blackstone raised $4.13bn through floating a 13.2% stake. | The surprise announcement comes two weeks after Blackstone raised $4.13bn through floating a 13.2% stake. |
| Private equity firms are investment companies that raise money from private sources rather than by using the stock market. | |
| They typically buy up businesses they believe can fare better, with a view to improving their performances and eventually, selling them on for a profit. | |
| Numerous hotel brands | Numerous hotel brands |
| Blackstone said it intends to grow the Hilton business. | Blackstone said it intends to grow the Hilton business. |
| The private equity firm already has a number of hotel investments, including La Quinta Inns and Luxury Resorts and Hotels. | The private equity firm already has a number of hotel investments, including La Quinta Inns and Luxury Resorts and Hotels. |
| US-based Hilton's other brands include Conrad Hotels, and the Waldorf-Astoria Collection. | US-based Hilton's other brands include Conrad Hotels, and the Waldorf-Astoria Collection. |
| Blackstone's co-founders, Stephen Schwarzman, 60, and Peter Peterson, 81, earned more than $2.4bn between them from last month's share sale. | Blackstone's co-founders, Stephen Schwarzman, 60, and Peter Peterson, 81, earned more than $2.4bn between them from last month's share sale. |
| The global network of Hilton hotels were reunited as one company in 2006 after a 42-year split. | The global network of Hilton hotels were reunited as one company in 2006 after a 42-year split. |
| The reunion happened after Hilton Hotels Corporation (HHC) paid $3.3bn to buy the 400 international Hilton hotels owned by UK-based Hilton Group. | The reunion happened after Hilton Hotels Corporation (HHC) paid $3.3bn to buy the 400 international Hilton hotels owned by UK-based Hilton Group. |
| The division took place in 1964, when HHC sold off all its overseas hotels to concentrate on the US market. | The division took place in 1964, when HHC sold off all its overseas hotels to concentrate on the US market. |