Hilton Hotels Eyes $6.3 Billion Merger with the Group´s British Division

Hilton Hotels Corp. is in discussions to acquire the hotel division of British company Hilton Group Plc., according to a media report last week. Ladbrokes, the London-based gambling business which is a part of Hilton Group, isn´t included in the deal.

Hilton Hotels Corp. has more than 2,300 hotels it owns, manages or franchises, while Hilton Group´s portfolio includes more than 400 hotels under the Hilton and Scandic brands.

Nearly a decade ago, the hotel companies formed an alliance to share marketing, reservations and loyalty programs. The companies reportedly held merger talks but failed to agree on price.

As recently as June, Stephen Bollenbach, Hilton Hotels´ co-chairman and chief executive, said he didn´t think a merger would happen before he retired in December 2007.

Mr. Bollenbach cited the reluctance of British shareholders to own stock in U.S. companies and the overall size of Hilton Group as major impediments.