CalPERS Backs Hilton’s Bid to Block ITT

The California Public Employees’ Retirement System said it filed a friend-of-the-court brief backing Hilton Hotels Corp.’s attempt to block ITT Corp.’s proposed restructuring. In a hearing Monday in U.S. District Court in Nevada, Hilton will try to block ITT’s planned split into three companies, which the Las Vegas-based hotel and casino operator wants to do without a shareholder vote. ITT also plans to buy back $2.1 billion in stock and issue $2 billion in new debt as part of the plan. Beverly Hills-based Hilton, which started a $10.5-billion hostile takeover offer for ITT in January and later raised its offer to $11.5 billion, or $70 a share, says ITT’s plan to split up the company ignores the interests of ITT shareholders. CalPERS filed the brief because of the “inability of shareholders to have a voice” in the restructuring, said Patricia Macht, a spokeswoman for the $127-billion fund. CalPERS owns 750,000 shares of ITT.