HOTELS: Hands Across a Tax Loss

One day last week Boston Real Estate Tycoon Abraham Malcolm Sonnabend, 58, happily extended his right hand, firmly shook his own left hand. He thus Approved a deal to let his restaurant chain, Childs Co., buy three Sonnabend hotels —Manhattan's Plaza, Boston's Somerset and Cleveland's Cleveland—and make himself a potful of money.

Childs stockholders, when they approve the plan, will probably get the hotels by giving shares in their company to the hotels' security holders, receive in turn stock in a new company: the Hotel Corporation of America. The new company will gross an estimated $52...

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