Hilton Hotels Corp. completes acquisition of lodging assets of Hilton Group

Hilton Hotels Corporation has completed its acquisition of the lodging assets of Hilton Group plc, known collectively as Hilton International, for approximately GBP 3.3 billion.

“This is one of the most noteworthy days in the history of our company, as Hilton is once again a global hotel company for the first time in over 40 years,” said Stephen F. Bollenbach, co-chairman and chief executive officer of Hilton Hotels Corporation.

Hilton Group is to return up to £4.2bn to investors following the sale of its international hotel business to Hilton Hotels Corporation, its brand partner in the US.

“It will be one of the largest ever shareholder payouts from a British company,” reported guardian.co.uk. “The moves brings to an end the strange pairing of the Hilton chain and bookmaker Ladbrokes, with the latter continuing as a stand-alone business under former divisional chief executive Chris Bell. Formally changing its name to Ladbrokes, Mr Bell yesterday insisted the company was not for sale.”

As per the information available, details of Ladbrokes intentions emerged yesterday as Hilton Group issued its last set of results, posting underlying pre-tax profit up 9.9 percent to £414m, on turnover of £11.5bn. Ladbrokes' core betting shop business posted a 2.3 percent decline in gross win (the amount lost by punters) for 2005, while the average weekly gross win from touch screen roulette machines, known as FOBTs, was down 6.7 percent. The group’s internet arm was performing strongly, up 94 percent.

The group is to return up to £4.2bn to shareholders, mainly through a special dividend early in the second quarter, following the £3.3bn sale of Hilton International announced in December.

Hilton's decision to pay the biggest special dividend in UK corporate history - up to £4.2bn - has prompted complaints from private shareholders for landing them with a thumping income tax bill, reported telegraph.co.uk. The payment, which is equivalent to 240p a share after including the 6.6p final, returns all the proceeds from the group's £3.3bn sale of its hotel wing and more.