Hilton Makes $10.5 Billion Bid For Itt

Hilton Hotels Corp, the largest US hotel and gambling company, offered Monday to acquire rival ITT Corp for $10.5 billion in cash, stock and assumed debt.

In a letter to ITT, Hilton offered to pay $6.5 billion in cash and stock and assume $4 billion in debt, creating the worlds largest lodging and gambling company.

ITT, owner of the Sheraton hotel chain and Caesars World Casinos, said it had received the offer and would make a recommendation to shareholders within 10 days. Industry experts said New York-based ITT may hold out for a higher price from Beverly Hills-based Hilton. ITT is a company with a potentially very high value, said Eric Longmire of Wyser-Pratte & Company Inc.