Family feuds aren’t good for business.
As Hyatt Hotels Corp. prepares to publically launch its shares on the stock market, the Pritzker family’s infighting is causing IPO troubles. Thier quibbles were recently made public in documents filed with the Securities and Exchange Commission.
“If such disputes occur, they may result in significant distractions to our management, disrupt our business, have a negative effect on the trading price of our Class A common stock and/or generate negative publicity,” the documents said.
The shares are expected to be priced between $23 and $26 apiece, but it is still unclear the number of shares that will be made available from the different family members.
Family members will be able to sell up to 25 percent of their shares each year, up from an initial 20 percent.
Since Hyatt-founder Jay Pritzker’s death in 1999, the family’s 11 heirs and current owner Thomas Pritzker have been fighting over the more than 100 businesses the family controls. In 2005, an arbitrator was appointed to resolve internal disputes.
If approved by the SEC, the sale of Hyatt shares is estimated to raise between $874 million and $988 million.