Gaming Commission delays decision in ITT proposal

Thursday, Sept. 25, 1997 | 11:23 a.m.

The regulatory panel voted 3-2 to delay any action at the close of an often-tense nine-hour hearing that pitted ITT against Hilton Hotels Corp.

Hilton has issued an unsolicited $11.5 billion, $70-a-share bid for ITT, which owns Caesars Palace and the Desert Inn on the Las Vegas Strip.

"It was so close to the judge's decision, I wanted to wait for his ruling," said Commissioner Arthur Marshall, who supported the delay.

U.S. District Court Judge Philip Pro is scheduled Monday to hear ITT's plan to break its holdings into separate hotel and gaming, phone directory and technical school corporations.

ITT executives have argued the "trivestiture" is a wise financial move for the company and its shareholders and will enhance the value of the company's stock.

Hilton executives have argued that the breakup creates a $1.4 billion "poison" tax bill for anyone attempting to buy ITT's hotel and gaming operations, and is simply designed to fend off the takeover.

Mississippi gaming regulators approved the plan on Sept. 15. New Jersey gaming regulators are scheduled to deliver their ruling today.

"Today has been a little bit of a surprise," ITT Chairman Rand Araskog said Thursday. "I thought this was going to be ITT's day. It's turned into something else I don't think is right."

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