ITT Corp. announces a planned divide-and-conquer business strategy, segmenting some $25 billion in sales and revenues into three separate companies sometime this fall. ITT calls the maneuver the largest transaction of its kind in business history.
Each company will have its own board of directors and its own listing on the New York Stock Exchange. ITT common stock holders will be issued one share of common stock for each of the new companies for each share of ITT common stock owned on the record date. The new companies are ITT Hartford (insurance), ITT Corp. (hospitality, entertainment and information services) and ITT Industries, which includes ITT Automotive, ITT Defense & Electronics and ITT Fluid Technologies.
"We firmly believe that this new structure of three separate companies will allow the management of the companies to focus more intensively on their respective businesses and provide the flexibility for each company to grow in a manner best suited for its industry," says ITT Corp. Chairman and CEO Rand V. Araskog.