Hilton, Circus Circus End Negotiations

Beverly Hills-based Hilton Hotels Corp. discontinued talks to buy Circus Circus Enterprises Inc. because the transaction faced a high tax liability and would have prevented Las Vegas-based Circus Circus from building a planned casino in Detroit, according to sources familiar with the talks. The transaction, which was likely to total more than $4 billion and involved Hilton splitting its casino resorts from its hotels, also may have run afoul of Hilton’s bond covenants.