ITT Climbs on Decision to Split Into Three Companies
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ITT Corp. surged after deciding to divide itself into three businesses, spinning off the water and defense units while the reconfigured company focuses on specialized products for industries such as oil and gas.
The new ITT will have pro forma sales of $2.1 billion in 2011, while the defense company may have sales of $5.8 billion and the water-technology business may generate $3.6 billion, the company said today in a statement. ITT climbed $8.72, or 17 percent, to $61.50 at 4:30 p.m. on the New York Stock Exchange, the biggest increase since Oct. 28, 2008.