ITT Corp. on Thursday rejected an $11.5 billion takeover offer from Hilton Hotels Corp. as inadequate, the second time in six months the company has spurned Hilton’s overtures.
ITT said its board voted unanimously against accepting Hilton’s $70-a-share offer, saying it “doesn’t reflect the inherent value of ITT.” The rejection was expected.
Beverly Hills, Calif.-based Hilton is offering to pay $8.3 billion in cash and stock and assume $3.2 billion of debt.
Last week, Hilton boosted its bid to $70 a share from $55.
New York-based ITT had rejected the $55-a-share bid in February.
ITT, which operates the Sheraton hotel chain and Caesar’s casinos, said it will pursue its plan to split up into three separate companies, buy back a quarter of its stock and add another $2 billion of debt.
The move will create a casino hotel company, a telephone directory publishing company and a technical-school operator.
ITT’s move shifts the takeover battle to federal court in Nevada, where Hilton is seeking to block ITT’s plan. Analysts, and even Hilton’s management, have said Hilton’s chances of succeeding in court are slim. Hilton has lost every court challenge in the ITT takeover battle so far.
