P.M. BRIEFING : Holiday Inn Sale Wins Approval

MEMPHIS, Tenn. — Holiday Corp. shareholders today approved a plan to sell the Holiday Inn hotel system to Bass PLC of Britain for $2.2 billion.

With the approval Bass acquires 55 owned or leased properties as well as franchise agreements, joint venture agreements and management contracts covering 1,400 Holiday Inn hotels in North America.

Holiday will run its profitable casino business and its newer hotel brands, Embassy Suites, Hampton Inn and Homewood Suites, under a new subsidiary, Promus Companies Inc. The agreement calls for Promus shareholders to receive a $30-per-share cash dividend.

Today’s vote was 16,696,795 for and 69,684 against, with 251,504 shares abstaining. Terms of the sale call for Holiday Corp. stockholders to draw one-quarter share of Bass stock for each of their Holiday Corp. shares.