Speculation in hotel circles was aroused by the news that billionaire Carl Icahn had acquired a small stake or1% in Hilton Hotels Corp.
The LA Times reported the move in a filing with Wyndham the Securities and Exchange Commission.
Icahn has a “well-earned reputation for buying stakes in companies and then leaning on management to make changes to boost shareholder returns,” the newspaper said.
His attempt to break up Time Warner Inc. this year was an example.
He eventually settled for a promise that the company would buy back additional stock and cut costs more aggressively.
Analyst Emile Courtney of Standard & Poor’s was quoted as saying his firm was maintaining its current credit rating on Hilton — BB with a stable outlook — with the expectation that cash flow and proceeds from asset sales would be used for debt reduction.
“We do not have concerns at this time,” Courtney said.
Report by David Wilkening
