Hilton stands pat
on ITT bid

Associated Press

NEW YORK -- Hilton Hotels Corp. said today it will not raise its $10 billion bid for ITT Corp., maintaining that its offer is still better than a sweetened $10.6 billion proposal from rival suitor Starwood Lodging Trust.

ITT shareholders will vote on the hostile bid Wednesday, when they choose whether to reelect ITT's current board or approve a slate of Hilton-nominated directors.

Hilton said it amended its offer to guarantee it will end nearly 10 months of pursuing the hotel and casino giant if ITT's board wins the vote.

New York-based ITT, parent of Sheraton hotels and Caesars casinos, wants shareholders to reelect its board to conduct an auction and sell the company to the highest bidder, despite already agreeing to a deal last month with Phoenix-based Starwood.

"The incumbent board has done everything in its power to prevent Hilton from acquiring ITT. We know that we will never win any 'auction' if the incumbent directors are reelected," Hilton CEO Stephen Bollenbach said.

Hilton's offer, while lower overall, contains $2.3 billion more cash than the increased bid made Friday by Starwood.