U.S. private equity firm Blackstone Group said on Tuesday it would buy Hilton Hotels for about $26 billion cash, the richest in a series of recent private equity offers for hotel companies.
Under terms of the agreed deal, Blackstone will pay $47.50 for each share of Hilton, one of the most prominent global hotel brand names. That's a 32% premium over Tuesday's closing price.
Options volatility and volume in Hilton stock was well above average before the close of trade on Tuesday, said Paul Foster, an options strategist at theflyonthewall.com.
Blackstone, which raised $4.1 billion in an IPO late last month, said it intends to invest in the Hilton properties and brands globally to grow the business.
Blackstone to Buy Hilton Hotels for $26 Billion
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