Hilton in Talks to Buy Circus Circus

Hilton Hotels Corp. has held talks with Circus Circus Enterprises Inc. about buying the casino operator, said Bear, Stearns & Co. analyst Jason Ader, citing conversations with executives at both companies. The discussions are at an early stage and may not yield an agreement, he said. Hilton and Circus Circus officials declined to comment. A purchase would be the biggest in a wave of industry acquisitions in recent months, and more are expected. Indeed, Hilton spent most of last year unsuccessfully pursuing ITT Corp., which was eventually acquired by Starwood Hotels & Resorts Trust for about $15 billion. Buying Circus Circus would give Beverly Hills-based Hilton some of the best-known properties in Las Vegas, including the Luxor and Excalibur. Hilton operates casinos under the Bally’s and Hilton names in Las Vegas and Atlantic City, N.J. Las Vegas-based Circus Circus shares rose $1.69 to close at $23.94, and Hilton shares rose 31 cents to $32.38. Both trade on the New York Stock Exchange.