ITT Corp. is delaying a $1.3 billion venture to build two casinos with Planet Hollywood International Inc. as ITT fends off a hostile takeover attempt by Hilton Hotels Corp.
In a federal filing, ITT said it is still negotiating the details of building casinos in Las Vegas and Atlantic City, N.J. The venture, announced in June 1996, was slated to break ground last year.
ITT is delaying the project to conserve cash to thwart Hilton’s $10.5 billion offer, some investors said. In addition, Hilton has said it will kill the venture if it buys ITT.
“It’s part of the takeover defense. They clearly need the capital,” said Erick Lucera, an analyst at Independence Investment Associates.
ITT’s shares rose 62-1/2 cents to close at $59.50, while Orlando, Fla.-based Planet Hollywood’s shares fell 43-3/4 cents to $16.68-3/4.
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