ITT, originally International Telephone and Telegraph, was a large conglomerate that owned a variety of businesses during the 1960s under Harold Geneen. In the 1970s ITT was forced to sell off the majority of its holdings and became a shell of its 1960s glory.

History

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The company began as an operator of telephone monopolies outside of the United States, and purchased a number of European telephony patents.

Growth

In the 1930s, ITT purchased the German electronic companies Standard Elektrizitaetsgesellschaft and Mix & Genest, both international active companies. During the 1950s, ITT purchased Philo Farnsworth's television company to break into the market. At that time Farnsworth was also developing the Fusor. In 1951, ITT bought a majority interest in the Kellogg Switchboard & Supply company (founded in 1897) and bought the remaining shares the next year. ITT changed the name to ITT Kellogg. After merging Federal Telephone and Radio Corporation into ITT Kellogg and combining manufacturing operations the name was changed again to ITT Telecommunications. In 1959 Harold Geneen was elected as CEO. Using leveraged buyouts, he turned the minor building of the 1950s into a major force during the 1960s. In 1963, ITT attempted to purchase the television network ABC for $700 million. The deal was halted by federal antitrust regulators who feared ITT was growing too large. In order to continue growing while not running afoul of antitrust legislation, it moved to acquire companies outside of the telecommunications industry. Under Geneen, ITT bought over 300 companies in the 1960s, including some hostile takeovers. The deals included well-known businesses like the Sheraton Hotel chain, Wonder Bread maker Continental Baking, Hartford insurance company, and Avis Rent-a-Car. ITT also absorbed smaller operations in auto parts, energy, books, semiconductors and cosmetics. ITT's sales grew from about $700 million in 1960 to about $8 billion in 1970, and its profit from $29 million to $550 million. However, when the higher interest rates started eating away at profits in the late 1960s, ITT's growth slowed considerably. In 1970 ITT owned of 70% of Chitelco, the Chilean Telephone Company and funded El Mercurio, a Chilean right-wing newspaper. Classified documents released by the CIA in 2000 suggest that ITT financially helped opponents of Salvador Allende's government prepare a military coup (National Security Archives). On September 28, 1973, ITT's headquarters in New York City, New York was bombed by protesters for alleged involvement in the overthrow of the democratically elected government in Chile. Geneen remained CEO of ITT until 1977 while many conglomerates had removed their CEOs due to lack of profits. His successor, Rand Araskog, dismantled much of ITT, selling most of its holdings, including the last of ITT's telecommunications businesses. The business historian Robert Sobel published ITT: The Management of Opportunity in 1982.

Breakup

In 1989, ITT sold all international telecommunications products business to Alcatel. ITT Kellogg was also part of the 1989 sale to Alcatel. The company was then sold to private investors in the U.S. and went by the name Cortelco Kellogg. Today the company is known as Cortelco (Corinth Telecommunications Corporation, named for Corinth, MS headquarters). ITT merged its long distance division with Metromedia Long Distance, creating Metromedia-ITT. Metromedia-ITT would eventually be acquired by Long Distance Discount Services, Inc. (LDDS) in 1993. LDDS would later change its name to Worldcom in 1995. In 1995, ITT Corporation split into 3 separate public companies:

• ITT Corp - In 1997, ITT Corp completed a merger with Starwood Hotels & Resorts Worldwide, selling off its non-hotel and resorts business.
• ITT Hartford (insurance) - Today ITT Hartford is still a major insurance company although it has dropped the ITT from its name altogether. The company is now know as The Hartford Financial Services Group, Inc.
• ITT Industries - Today ITT Industries still operates under this name and is a major manufacturing and defense contractor businesses. Effective July 1, 2006, ITT Industries will change its name to ITT Corporation as a result of its shareholders vote on May 9, 2006.

Noted Histories

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• Robert Sobel, ITT: The Management of Opportunity, New York, Times Books, 1982. with co-operation of ITT, but not an "official" history.

Trivia

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1330 Avenue of the Americas in New York City, New York which was ITT's corporate headquarters prior to its merger with Starwood Hotels & Resorts was original owned by the ABC Television Network which ITT attempted to acquire in 1963. After a financial downturn, ABC moved out of the building and sold it to a Japanese conglomerate which then in turn leased a good portion out to ITT Corporation.

External links

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• ITT Industries
• Cortelco
• Nazi Involvement

Telecommunications history Companies based in New York Conglomerate companies International Telephone and Telegraph International Telephone and Telegraph

More on [ ITT ]

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