Claiming Hilton Hotels Corp.'s management and directors breached their fiduciary duty to stockholders when they agreed to sell the company to the Blackstone Group for $20.1 billion, two Hilton Hotels shareholders are now suing the company, according to a published report.
The lawsuits, which allege that Hilton Hotels agreed to be acquired for a price that is too low, seek an order blocking the proposed sale. The suits are also seeking class-action status and have asked the court to force Hilton Hotels to seek a more lucrative offer for the company.
One of the shareholders involved in the suit, Christine Guiseppone, has specifically taken issue in her case with the proposed deal's associated termination fee of $560 million, which Hilton would have to pay Blackstone if it backs out of the deal. She said that the fee effectively guarantees that the deal will close.
The lawsuits, which allege that Hilton Hotels agreed to be acquired for a price that is too low, seek an order blocking the proposed sale. The suits are also seeking class-action status and have asked the court to force Hilton Hotels to seek a more lucrative offer for the company.
One of the shareholders involved in the suit, Christine Guiseppone, has specifically taken issue in her case with the proposed deal's associated termination fee of $560 million, which Hilton would have to pay Blackstone if it backs out of the deal. She said that the fee effectively guarantees that the deal will close.