Breaking up is hard to do, especially the second time around.
But ITT Corp.’s split into three separate companies, its second spin-off in as many years, may be the remedy needed to repel a hostile $6.5 billion takeover bid from Hilton Hotels Corp.
“There is no question that ITT has moved the ball way down the field with this announcement,” said James Murren, an analyst at Deutsche Morgan Grenfell. “Now Hilton will have to think of its next step.”
In its announcement Wednesday, the New York-based ITT said it would spin off its hotel and casino operations, which include the Sheraton chain; its telephone directory publishing business; and its technical schools.