Hilton Hotels Corp. is buying Promus Hotel Corp. in a $4 billion stock and cash deal that will create one of the nation's biggest lodging chains with more than 1,700 hotels and 290,000 rooms.
The deal, announced today, gives Hilton a large stake in the fast-growing limited-service and all-suites segments of the travel market. Promus' interests include Embassy Suites, Doubletree, Homewood Suites and Hampton Inn.
The companies had said last week that they were holding merger talks. Hilton had shown interest in buying Promus, but had indicated it was too expensive. Promus had $1.1 billion in revenues in 1998, with Hilton showing $1.8 billion for the same period.
Under the deal, Hilton will pay $38.50 per share in cash for 55 percent of the Promus shares. The remaining 45 percent of Promus shares will be exchanged for Hilton common stock.
Hilton estimates that the merger will result in annual operating and cost savings of roughly $55 million for the first year, with savings estimates of $99 million in following years.
Hilton has about 275 owned, managed or franchised hotels in North America, including its newer mid-priced Hilton Garden Inn hotels and Hilton Residential Suites extended-stay hotels. The lodging company also has Hilton grand vacation timeshare facilities.
Amazon.com hires Delta executive
NEW YORK (AP) -- Amazon.com Inc. named a top Delta Air Lines executive as its new chief financial officer, the Internet merchant's second big hire in a week as it aggressively builds its management ranks.
Warren Jenson, who had been executive vice president and CFO at Atlanta-based Delta, succeeds Joy Covey, who is now serving as Amazon.com's chief strategy officer.
Jenson's appointment, which was announced today, comes just days after Amazon.com named Allied Signal executive Jeffrey Wilke as its head of logistics. He will oversee the Seattle-based company's ambitious plan to expand its shipping and distribution operations.
In June, Amazon.com wooed former Black & Decker executive Joe Galli to be its president.
Pan Am to return to the air
PORTSMOUTH, N.H. (AP) -- Pan American Airways, at one point one of the world's largest air carriers before falling upon hard times, has received final federal approval to resume regular passenger service froms Pease International Tradeport, site of the old Pease Air Force Base.
Pan Am president Dave Fink said details of the new service are being worked out and will be announced soon. Initially, Pan Am will fly from Pease to Orlando, Fla.
Guilford Transportation Industries Inc., a New England railroad operator, bought the airline's name, jets, parts and flight certificates for $28.5 million in June 1998.
Hyundai stock scheme protested
SEOUL, South Korea (AP) -- Dozens of civic activists staged a boisterous demonstration Monday, denouncing Hyundai, the nation's largest conglomerate, for allegedly diverting company funds to manipulate stock prices.
One Hyundai executive was arrested and nine others were barred from leaving the country last week pending investigation of what prosecutors said is the largest stock price manipulation scheme in South Korean history.
In the alleged scheme last year, at least two Hyundai affiliates illegally diverted $183 million in company funds to boost the stock price of Hyundai Electronic Co. from $12.30 per share to $26.70.
Local media, quoting unidentified prosecution sources, said Hyundai made at least $416 million off the scheme.
On Monday, prosecutors questioned Kim Hyong-byuk, head of Hyundai Heavy Industry Co., a unit of the Hyundai group, for alleged involvement. His company allegedly diverted $157 million in company funds for the scheme.
Lockheed to cut 100 jobs in Syracuse
SYRACUSE (AP) -- Lockheed Martin Corp. plans to cut 100 jobs at its Ocean, Radar & Sensor Systems division plant here, citing the loss of a $200 million Australian radar contract and Britain's tardiness in awarding several other contracts.
If fewer than 100 workers volunteer for buyouts, the company will begin laying off workers on Sept. 10, he said.