Hilton Expected to Reverse ITT Agreements

Beverly Hills-based Hilton Hotels Corp. Chief Executive Stephen Bollenbach said he will seek to reverse three sales agreements totaling $625 million reached by ITT Corp. if it succeeds in its $11.5-billion takeover attempt. Bollenbach said Hilton will seek to undo ITT’s $200-million sale of five hotels to FelCor Suite Hotels Inc., which was completed in June, and also pending sales of half of ITT’s Las Vegas Desert Inn casino to financier Marvin Davis for $200 million, and a third of its phone book business to Clayton, Dubilier & Rice for $225 million. The comments by Bollenbach, made at a gaming and lodging conference in Las Vegas, come a month before ITT investors are to vote on slates of directors nominated by both ITT and Hilton. Those directors will decide whether to pursue Hilton’s acquisition plan or a strategy Hotel of ITT to split into three companies. “This is absolute nonsense. The FelCor transaction is a done deal,” ITT spokesman Jim Gallagher said.