ITT INCREASES ITS CASH POSITION -- PRELUDE TO A BID FOR CBS?
Published February 15, 1995
Continuing its restructuring, ITT Corp. said that it would sell three buisnesses from its ITT Financial Corp. subsidiary to GE Capital Corp. for $1.8B. The deal is the third sale of portions of ITT's financial subsidiary, as the company is seeking to expand its entertainment segment and raise a net of around $3B in the process. Analysts estimate ITT Corp. would net about $400M from the sale to GE Capital. ITT management has said it is considering breaking ITT Corp. into three separate companies: ITT Hartford (insurance), ITT Industries (manufacturing) and ITT Sheraton/Caesars World (hotels, gaming and entertainment). ITT's shares rose by $1.50 to 96 3/4 on NYSE upon news of the deal (Kenneth Gilpin, N.Y. TIMES, 2/15). Some Wall Street "insiders" speculate ITT's added cash could go toward a bid for CBS, which some analysts see as a "good strategic fit for the emerging entertainment group." This week, ITT is finishing its deals for MSG (with partner Cablevision) and Caesar's World (Paul Tharp, N.Y. POST, 2/15).