ITT CORPORATION

also called (until 1983) International Telephone And Telegraph Corporation , former American telecommunications company that grew into a successful conglomerate corporation before its breakup in 1995. ITT was founded in 1920 by Sosthenes Behn and his brother Hernand Behn as a holding company for their Caribbean-based telephone and telegraph companies; it received its name in imitation of the American Telephone and Telegraph Company (AT&T). Throughout the 1920s ITT expanded into the still-undeveloped European telephone market, obtaining the concession for telephone service in Spain in 1924. In 1925 the company purchased AT&T's large foreign manufacturing subsidiary, International Western Electric, and renamed it ITT Standard Electric Corporation; this move made ITT a major telecommunications manufacturer in 11 countries. Sosthenes Behn was succeeded by Harold Sydney Geneen, who ran the company from 1959 to 1978. Under Geneen, ITT became an aggressive conglomerate and underwent a second period of rapid expansion, acquiring 275 other companies and increasing its annual sales nearly 20-fold. Among its purchases were the Sheraton Corporation, one of the largest American hotel chains, in 1968, and one of the nation's leading insurance firms, the Hartford Fire Insurance Company, in 1970. Under the leadership of Rand Araskog from 1980, however, ITT sold off many of the companies it had acquired earlier under Geneen, including its Continental Baking subsidiary. In 1987 it divested its telecommunications businesses by forming a joint venture, Alcatel N.V., with France's Cie. Gnrale d'Electricit, which held a controlling interest in the venture. In 1995 it sold its financial-service businesses and acquired Madison Square Garden in New York City and Caesars World, Inc., a large casino operator. Later that year ITT split itself into three separate companies: ITT Hartford Group Inc., consisting of insurance companies; ITT Industries Inc., defense-electronics and automotive-parts companies; and a new' ITT Corporation consisting of the Sheraton Hotel chain, Caesars World, and Madison Square Garden. In 1998 this new ITT Corporation was acquired by Starwood Hotels & Resorts Worldwide, Inc.