Shareholders Sue Hilton Over Sale

10th July 2007 (Last Updated July 10th, 2007 11:46)

The sale of Hilton Hotels to US private equity company Blackstone Group may be halted by two disgruntled shareholders who believe the company is worth more than the $26 billion agreed upon, news agency Associated Press reports. The Hilton shareholders have filed lawsuits in Los Angeles

The sale of Hilton Hotels to US private equity company Blackstone Group may be halted by two disgruntled shareholders who believe the company is worth more than the $26 billion agreed upon, news agency Associated Press reports.

The Hilton shareholders have filed lawsuits in Los Angeles Superior Court claiming Hilton’s management breached its fiduciary duty to stock holders. They seek to block the sale and compel Hilton to seek a more lucrative offer.

The deal, announced last week, is due to close in the fourth quarter of this year.

Blackstone has agreed to pay $47.50 per Hilton share – 32% more than its value the day before the announcement.

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