Carving Itt Into Three Slices
THE DEAL WASN'T A COMPLETE surprise: ITT's breakup had been rumored for at least a year. On June 13, though, ITT finally announced the plan. The conglomerate will be split into three publicly owned companies later this year. CEO Rand Araskog will head the new ITT Corp.--which will house Sheraton hotels, Caesars World casinos, and the information services businesses. What's left: ITT Hartford, the insurance business, and ITT Industries, which will include automotive, defense, electronics, and fluid technologies operations. "The big winners are the shareholders, the bondholders, and the employees," says CFO Robert Bowman. In fact, ITT shares jumped 8%.