CARIBE HILTON • SAN JUAN, P. R.
(Opening late in 1949)
During the year 1948, your corporation purchased 64,187.35 shares of convertible preference stock having an aggregate par value of
$3,209,367.50 at a cost of $2,276,188.43. This is
an average gross cost of $35.46 per share. On
June 2, 1948, the corporation invited tenders of
convertible preference stock at a price not to
exceed $35.00 a share. A total of 54,017 shares
was acquired at a cost of $1,890,595. Capital surplus was increased by $933,179.07 due to these
On January 31st, 1949 an additional offer was
made to the holders of the convertible preference stock to purchase such stock at $40.00 per
share on the following terms: 20% in cash and
an option on 20% for each of the following four
years. Shareholders to agree to waive dividends
on said stock under option to the Corporation.
A total of 71,002 shares were submitted to the
Corporation on this basis, of which 14,206 shares
were purchased and paid for and 56,796 shares
are subject to the Corporation's option. Capital
surplus was further increased by $142,060.
Pursuant to the authorization of your Board
of Directors, 31,100 shares of Hilton Hotels Corporation common stock were purchased in the
open market at a cost of $330,917.03, an average
of $10.64 per share. These shares have been
placed in the corporation treasury and are available for future corporate use.
A comparison of the outstanding capitalization for the years ended December 31, 1948, and
December 31, 1947, respectively, is shown below:
„ , , ,. 12-31-48 12-31-47
b unded and long
term indebtedness $23,187,174.60 $22,758,750.06
Convertible Preference Stock
4% ($50 par)..
($5.00 par) ..
Capital and Earned Surplus . . .
Deduct: Cost of
Treasury Common Stock . .. 330,917.03
and Surplus. . $28,521,802.72 $29,034,956.30