FlyerTalk Forums - View Single Post - Hotel Workers on Strike at Grand Hyatt in San Francisco
Old Nov 6, 2009 | 8:44 am
  #14  
Travailen
 
Join Date: Oct 2009
Location: ORD, LHR, GLA
Programs: AA CK/EXP/1MM, UA Conscientious Objector, Hyatt CC, SPG Plat, HH Diamond VIP
Posts: 244
Originally Posted by LIH Prem
You haven't been keeping up. Just do a search for "Pritzker family trust".

The family is splitting up the trust. The IPO is just one of many things that is part of that process that started with a lawsuit by 2 younger family members in 2002 ...
-David
I have been keeping up and am very familiar with the lawsuit and the split of the trust -- in Chicago this is old news. Even with these trusts being split, none of the beneficiaries are hurting for cash. That being said, the division of trusts has little if nothing to do with the IPO -- the trusts are family trust, and while Hyatt is a private company, it is part of a larger organization with diversified holdings that include manufacturing, materials, technology, transportation, investment banking, real estate, and many, many other interests. Indeed, Hyatt is not even the largest of the Pritzker holdings.

So, no offense, but equity investors tend to be a savvy bunch -- especially those with an inside track or first stab at an IPO -- and they could see right through a cynical raise to recoup lost trust funds, and would not participate. They are not in the business of charity.

IMHO, it is too easy to fall back on the trust fund lawsuit as a justification for anything and everything -- the owners will make money if the IPO is successful (as is the case with any successful IPO), but the objective is to grow the company, not to top up their trust funds.
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