Hilton Stock Price Dives 20% in Wake of Decision Not to Sell

Hilton Hotels Corp. stock lost nearly 20% of its value Thursday in reaction to the announcement that the chain has taken itself off the sales block.

Hilton’s stock plunged $10.375 to $50.625 a share on the New York Stock Exchange after falling $5.375 on Wednesday.

Hilton’s board announced late Wednesday after the market closed that it had rejected two offers and was no longer for sale. The move came nine months after Hilton announced it was ready to consider offers.

Analysts had speculated that the company could cash in on its highly recognizable name to fetch as much as $6 billion, or $120 a share.

The company owns such world-class properties as the Waldorf Astoria Hotel on New York’s Park Avenue.

Traders said Hilton stock hit a high of $115.50 last August, just after the company said it was looking for a buyer. In early 1989 the stock traded in the high $40 range and began to climb sharply in the spring on takeover speculation.