Editing ITT Inc. (section)

==History==

===Beginnings and early acquisitions===
Brothers [[Hernan Behn]] and Colonel [[Sosthenes Behn]] formed International Telephone & Telegraph (ITT) in 1920. The brothers had acquired the [[Puerto Rico Telephone Company]] in 1914, along with the Cuban-American Telephone and Telegraph Company and a half-interest in the Cuban Telephone Company.<ref name=RSob2000>{{cite book|last=Sobel|first=Robert|title=ITT: The Management of Opportunity|year= 2000 |publisher= Beard Books|pages=35ff|title-link=ITT: The Management of Opportunity}}</ref><ref name=NBMac2009>{{cite book|last=Macintosh|first=Norman B.|title=Management Accounting and Control Systems|year= 2009 |publisher= John Wiley and Sons|pages=155–6|author2=Paolo Quattrone}}</ref><ref name=JNIng1983>{{cite book |last= Ingham|first=John N.|title=Biographical dictionary of American business leaders, Volume 1|year= 1983 |publisher= Greenwood Publishing Group|pages=62–4}}</ref> ITT's first major expansion came in 1923, when it consolidated operators in the telecoms market in Spain into what eventually became [[Telefónica]].<ref name="sampson">Sampson, Anthony. ''The Sovereign State of ITT, Hodder and Stoughton'', 1973. {{ISBN|0-340-17195-2}}</ref><ref>Garcia Algarra, Javier (2010). [https://ieeexplore.ieee.org/document/5735280/;jsessionid=D68A01A68C303DF2D5AA74A0DF38756C?arnumber=5735280 "The American influence in Telefónica's public relations strategy during the 20s and 30s"], IEEE HISTELCON 2010</ref> From 1922 to 1925, ITT purchased a number{{Which|date=January 2020}} of European telephone companies.

In 1925, ITT purchased several companies from [[Western Electric]], as [[Bell System|Bell]] had agreed to "divest" itself of its international operations. They included the [[Bell Telephone Manufacturing Company]] (BTM) of Antwerp, Belgium, which manufactured [[rotary system]] switching-equipment, and the British ''International Western Electric'', which was renamed [[Standard Telephones and Cables]] (STC). [[Compagnie Générale d'Electricité]] later purchased BTM; [[Nortel]] later purchased STC.

In the 1930s, ITT purchased German electronic companies Standard Elektrizitäts-Gesellschaft (SEG) and [[Mix & Genest]] (both of which were internationally active companies) and Romanian telecommunications monopoly [[Romtelecom|Societatea Anonima Română de Telefoane]]. Its only serious rival was the [[Theodore Gary & Company]] conglomerate, which operated a subsidiary, Associated Telephone and Telegraph, with manufacturing plants in Europe.

In the United States, ITT acquired the various companies of the [[Mackay Radio|Mackay Companies]] in 1928 through a specially organized subsidiary corporation, [[Postal Telegraph Company|Postal Telegraph & Cable]]. These companies included the [[Commercial Cable Company]], the [[Commercial Pacific Cable Company]], [[Postal Telegraph]], and the [[Federal Telegraph Company]].

[[File:75 Broad SW door jeh.JPG|thumb|200px|75 Broad Street, Manhattan, former headquarters of ITT]]
[[File:75 Broad SW door jeh detail.JPG|thumb|200px|Detail of door]]

=== German subsidiaries in the Nazi period ===
On August 3, 1933, [[Adolf Hitler]] received [[Sosthenes Behn]] (then the CEO of <noinclude>ITT</noinclude><!--These tags are used to refine the excerpt at [[Business_collaboration_with_Nazi_Germany]]--><includeonly>[[ITT Inc.|ITT]]</includeonly>) and his German representative, Henry Mann, in one of his first meetings with US [[businessmen]].<ref name="sampson"/><ref>''AMERICAN VISITS HITLER. Behn of National City Bank Confers With Chancellor in Alps''. ''New York Times'', 1933-08-04, {{cite news |url=http://select.nytimes.com/gst/abstract.html?res=F30D17F9345A16738DDDAD0894D0405B838FF1D3 |title= AMERICAN VISITS HITLER.; Behn of National City Bank Con- fers With Chancellor in Alps. |access-date=2013-05-16 |url-status=live |archive-url= https://web.archive.org/web/20140307030411/http://select.nytimes.com/gst/abstract.html?res=F30D17F9345A16738DDDAD0894D0405B838FF1D3 |archive-date= 2014-03-07 |newspaper=The New York Times |date= 1933-08-04 }}</ref><ref>»Empfänge beim Reichskanzler«, ''Vossische Zeitung'', Berlin 1933-08-04, Abendausgabe, Seite 3, {{cite web |url= http://zefys.staatsbibliothek-berlin.de/dfg-viewer/?set%5Bimage%5D=3&set%5Bzoom%5D=max&set%5Bdebug%5D=0&set%5Bdouble%5D=0&set%5Bmets%5D=http%3A%2F%2Fzefys.staatsbibliothek-berlin.de%2Foai%2F%3Ftx_zefysoai_pi1%255Bidentifier%255D%3D5ce888cb-9b7f-4738-acd3-f8170a34e3b9 |title= Vossische Zeitung Berlin 1933-08-04 |access-date=2013-05-03 |url-status=dead |archive-url= https://web.archive.org/web/20140307025835/http://zefys.staatsbibliothek-berlin.de/dfg-viewer/?set%5Bimage%5D=3&set%5Bzoom%5D=max&set%5Bdebug%5D=0&set%5Bdouble%5D=0&set%5Bmets%5D=http%3A%2F%2Fzefys.staatsbibliothek-berlin.de%2Foai%2F%3Ftx_zefysoai_pi1%255Bidentifier%255D%3D5ce888cb-9b7f-4738-acd3-f8170a34e3b9 |archive-date=2014-03-07 }}</ref>{{request quotation|date=February 2023}}

In his book ''Wall Street and the Rise of Hitler'', [[Antony C. Sutton]] claims that ITT subsidiaries made cash payments to [[Schutzstaffel|SS]]-leader [[Heinrich Himmler]]. ITT, through its subsidiary [[C. Lorenz AG]], owned 25% of [[Focke-Wulf]], the German aircraft-manufacturer, builder of some of the most successful [[Luftwaffe#Interwar period|Luftwaffe]] fighter-aircraft. In the 1960s, ITT Corporation won $27 million in compensation for damage inflicted on its share of the Focke-Wulf plant by [[Allies of World War II|Allied]] bombing during [[World War II]].<ref name="sampson"/> In addition, Sutton's book uncovers that ITT owned shares of ''Signalbau AG, Dr. Erich F. Huth'' (Signalbau Huth), which produced for the German [[Wehrmacht]] [[radar]] equipment and [[transceiver]]s in [[Berlin]], [[Hanover]] (later [[Telefunken]] factory), and other places. While ITT - Focke-Wulf planes were bombing Allied ships and ITT lines were passing information to German submarines, ITT direction-finders were saving other ships from torpedoes.<ref>The Office of Military Government US Zone in Post-war Germany 1946-1949, declassified per Executive Order 12958, Section 3.5 NND Project Number: NND 775057 by: NND Date: 1977</ref> The payments to Himmler were noted in a 1946 banking investigation report by the Office of Military Government, United States.<ref>{{Cite web |last1=Adams |first1=Foster |last2=Lang |first2=Emil |date=March 1, 1946 |title=OMGUS, Finance Division, Bank Investigation Report: Baron Kurt von Schroeder |url=https://catalog.archives.gov/id/77304102?objectPage=20 |access-date=March 7, 2024 |website=National Archives Catalog}}</ref>

In 1943, ITT became the largest shareholder of Focke-Wulf Flugzeugbau GmbH with 29%, and remained so for the duration of the war. This was due to [[Café HAG|Kaffee HAG]]'s share falling to 27% after the death in May of Kaffee HAG chief [[Ludwig Roselius|Dr. Ludwig Roselius]]. [[OMGUS]] documents reveal that the role of the HAG conglomerate could not be determined during WWII.<ref>Leidig, Ludwig. Bombshell. sbpra, 2013 {{ISBN|978-1-62516-346-2}}</ref>

=== Post-war acquisitions ===
In 1951, ITT purchased [[Philo Farnsworth]]'s [[television]] company to break into that market. At the time, Farnsworth was also developing the [[Fusor]] [[Nuclear fusion|fusion reactor]], which was funded by ITT until 1967.<ref>{{cite web|last1= Farnsworth|first1=Emma|title=Farnsworth, Philo T. and Elma G.|url= http://trove.nla.gov.au/work/23940752?q=+&versionId=28954127|publisher=J. Willard Marriott Library, University of Utah|access-date=8 July 2014|url-status=dead|archive-url= https://web.archive.org/web/20140714150139/http://trove.nla.gov.au/work/23940752?q=+&versionId=28954127|archive-date= 14 July 2014}}</ref> Also in 1951, ITT bought a majority interest in the [[Kellogg Switchboard & Supply Company]] (founded in 1897 as a pioneer in "divided-multiple" [[telephone switchboard]]s) and bought the remaining shares the next year. ITT changed the company's name to ITT Kellogg. After merging [[Federal Telephone and Radio Corporation]] into ITT Kellogg and combining manufacturing operations the name again changed to '''ITT Telecommunications''', eventually reverting to '''ITT Kellogg'''.

One prominent subsidiary of this was the [[American Cable and Radio Corporation]], which operated the [[Transatlantic communications cable|transatlantic cables]] of the [[Commercial Cable Company]], among other ventures.  It bought [[Philadelphia]]-based heating and air-conditioning manufacturer John J. Nesbitt Inc. 
In 1968, the company purchased Levittown homebuilder [[Levitt & Sons]] for a reported $90 million.

In 1972 the KONI Group,<ref>{{cite web|url=http://www.koni.com/company-link-header/profile/history/|title= KONI shock absorbers|url-status=dead|archive-url= https://web.archive.org/web/20150518032714/http://www.koni.com/company-link-header/profile/history/|archive-date=2015-05-18}}</ref> manufacturer of shock absorbers was added to the list of ITT's acquisitions.

=== International telecommunications ===
International telecommunications manufacturing subsidiaries included [[Standard Telephones and Cables]] in the United Kingdom and Australia, [[Indosat]] in Indonesia, [[Standard Elektrik Lorenz]] (today part of [[Nokia]] Germany) and ''{{interlanguage link|vertical-align=sup|Intermetall|de}} Gesellschaft für Metallurgie und Elektronik mbH'' (acquired from [[Clevite]] in 1965; now TDK-Micronas) in Germany, [[Bell Telephone Manufacturing Company|BTM]] in Belgium, and CGCT and LMT in France. These companies manufactured equipment according to ITT designs including the (1960s) Pentaconta [[crossbar switch]] and (1970s) Metaconta D, L and 10c [[Stored Program Control exchange]]s, mostly for sale to their respective national telephone administrations. This equipment was also produced under license in [[Poznań]] (Poland), and in [[Socialist Federal Republic of Yugoslavia|Yugoslavia]] and elsewhere. ITT was the largest owner of the [[LM Ericsson]] company in Sweden, but sold out in 1960.

[[Alec Reeves]], an ITT employee in France in the 1930s, developed [[pulse-code modulation]] (PCM) innovations, upon which future digital voice-communication was based. [[Charles K. Kao]], working at STC in the UK, pioneered the use of [[optical fiber]] from 1966, for which he was awarded the 2009 [[Nobel Prize in Physics]].

=== Harold Geneen appointment ===
In 1959, [[Harold Geneen]] became CEO. Using [[leveraged buyout]]s, he turned the minor acquisitions of the 1950s into major growth during the 1960s. In 1965, ITT attempted to purchase the [[American Broadcasting Company|ABC]] television network 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 takeover]]s. The deals included well-known businesses like the [[Sheraton Hotels and Resorts|Sheraton]] hotel chain, [[Wonder Bread]] maker [[Continental Baking Company|Continental Baking]], [[Rayonier]], and [[Avis Rent A Car System Inc.|Avis Rent-a-Car]]. ITT also absorbed smaller operations in auto parts, energy, books, semiconductors, and cosmetics. In 1966, ITT acquired Educational Services, Inc., an operator of [[For-profit education|for-profit schools]], which became [[ITT Technical Institute|ITT/ESI]]. When ITT attempted to acquire [[The Hartford]] insurance company in 1970, the [[United States Department of Justice|US Justice Department]] filed suit, and ITT agreed to divest assets equal to those of Hartford's, including Avis.<ref>[http://www.fundinguniverse.com/company-histories/International-Telephone-and-Telegraph-Corporation-Company-History.html International Telephone and Telegraph Corporation] {{webarchive|url=https://web.archive.org/web/20120122173433/http://www.fundinguniverse.com/company-histories/International-Telephone-and-Telegraph-Corporation-Company-History.html |date=2012-01-22 }} at Funding Universe</ref>

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 increased interest rates started eating away at profits in the late 1960s, ITT's growth slowed considerably.

In the late 1960s, the British electronics manufacturer [[Kolster-Brandes|Kolster-Brandes Limited]], KB for short, had run into trouble with its [[color television]] manufacturing, and turned to ITT for help; ITT bought out the company, and for a while, UK products were badged "ITT KB" then eventually just ITT. By the late 1970s, ITT had a good presence on the UK domestic electrical market in television, audio and portable radio products.

=== Brazilian expropriation in 1962 ===
In February 1962, during the presidency of [[João Goulart]], the State Governor of [[Rio Grande do Sul]] [[Leonel Brizola]] decided to expropriate a Brazilian subsidiary of ITT, the Companhia Telefônica Nacional. During the next years of Goulart's presidency, the expropriation was one of the most debated Brazilian political issues. The action from the State Governor to expropriate the company was never supported by the Brazilian president at the time and had severe implications for [[Brazil–United States relations]]. Some historians even say that the expropriation was one of the reasons for the [[federal government of the United States]] supporting the [[1964 Brazilian coup d'état]].<ref>{{Cite web|last=Brasil|first=CPDOC-Centro de Pesquisa e Documentação História Contemporânea do|title=LEONEL DE MOURA BRIZOLA|url=http://www.fgv.br/cpdoc/acervo/dicionarios/verbete-biografico/leonel-de-moura-brizola|access-date=2020-07-24|website=CPDOC - Centro de Pesquisa e Documentação de História Contemporânea do Brasil|language=pt-br}}</ref>

===1972 Republican National Convention ===
ITT became enmeshed in scandal in connection with the [[1972 Republican National Convention]]. In May 1971, ITT president Geneen pledged $400,000 to support a proposal to hold the convention in [[San Diego]]; only $100,000 of the contribution was publicly disclosed. The [[Republican National Committee]] selected San Diego as the site in July 1971.

However, on February 29, 1972, newspaper columnist [[Jack Anderson (columnist)|Jack Anderson]] disclosed an interoffice memo from ITT lobbyist Dita Beard to ITT vice president Bill Merriam, dated June 25, 1971. The memo appeared to draw a connection between ITT's contribution to the convention and the favorable settlement of a [[United States Department of Justice Antitrust Division]] lawsuit. The resulting scandal, including a Senate investigation and the threat of criminal charges, caused ITT to withdraw its support for the San Diego convention. That combined with a shortage of hotel space and problems with the proposed venue led the RNC to move the convention to Miami.<ref>{{cite journal|last=Ancona|first=Vincent S.|date=Fall 1992|title=When the Elephants Marched out of San Diego|journal=Journal of San Diego History|publisher=San Diego Historical Society|volume=38|issue=4|url=http://www.sandiegohistory.org/journal/92fall/elephants.htm|url-status=live|archive-url=https://web.archive.org/web/20130705183100/http://www.sandiegohistory.org/journal/92fall/elephants.htm|archive-date=2013-07-05}}</ref> Special prosecutor [[Leon Jaworski]] investigated the case but ultimately concluded there was no evidence of criminal conduct by ITT.<ref>{{cite news|url=http://www.time.com/time/magazine/article/0,9171,911385,00.html|title=ITT: No charges|date=June 10, 1974|work=Time Magazine|access-date=24 October 2012|url-status=dead|archive-url=https://web.archive.org/web/20121019204618/http://www.time.com/time/magazine/article/0,9171,911385,00.html|archive-date=19 October 2012}}
[http://www.trivia-library.com/a/united-states-and-american-history-1972.htm United States and American History: 1972] {{webarchive|url=https://web.archive.org/web/20070318231952/http://www.trivia-library.com/a/united-states-and-american-history-1972.htm |date=2007-03-18 }} at trivia-library.com</ref>

Nixon aides such as [[John Dean]] and [[Jeb Stuart Magruder]] have alleged that the [[Watergate scandal|Watergate break-in]] was motivated by the [[Committee for the Re-Election of the President]]'s suspicion that the [[Democratic National Committee]] was making similar deals to fund its [[1972 Democratic National Convention|1972 convention]]. This theory is supported by conversations and exchanges between President [[Richard Nixon]] and his chief of staff [[H. R. Haldeman]] before and after the break-in, as well as by testimony by [[E. Howard Hunt]]. However, this theory has also been disputed by others involved in the break-in such as [[G. Gordon Liddy]].<ref>Graff, Garrett M. (2022). ''Watergate: A New History'' (1 ed.). New York: Avid Reader Press. p. 171-172. {{ISBN|978-1-9821-3916-2}}. {{OCLC|1260107112}}</ref>

=== Involvement in 1973 Pinochet coup in Chile ===

In 1970, ITT owned 70% of CTC (the Chilean Telephone Company, now [[Movistar]] Chile) and funded ''[[El Mercurio]]'', a Chilean [[Right-wing politics|right-wing]] newspaper. ITT also had some $200&nbsp;million-worth of investments in [[Chile]]. Under Geneen's leadership, ITT funneled $350,000 to [[Salvador Allende|Allende]]'s opponent, [[Jorge Alessandri]].<ref>Gilpin, Kenneth N. [https://www.nytimes.com/1997/11/23/business/harold-s-geneen-87-dies-nurtured-itt.html ''"Harold S. Geneen, 87, Dies"''] ''The New York Times'', November 23, 1997</ref> When [[Salvador Allende|Allende]] won the presidential election, ITT offered the [[CIA]] $1,000,000 to defeat [[Salvador Allende|Allende]], though the offer was rejected.<ref>[http://foia.state.gov/Reports/ChurchReport.asp ''Staff Report of the Select Committee To Study Governmental Operations With Respect to Intelligence Activities''] {{Webarchive|url=https://web.archive.org/web/20090911173014/http://foia.state.gov/Reports/ChurchReport.asp |date=September 11, 2009 }}, December 18, 1975</ref> Declassified documents released by the U.S. [[Central Intelligence Agency]] in 2000 reveal that the company financially helped opponents of [[Salvador Allende]]'s government prepare a [[military coup]].<ref>[http://foia.state.gov/Reports/HincheyReport.asp#17 Hinchey Report] {{webarchive|url=https://web.archive.org/web/20091020110606/http://foia.state.gov/Reports/HincheyReport.asp |date=2009-10-20 }} at US Dept. of State</ref><ref>{{cite news | url=https://www.nytimes.com/2003/01/30/world/edward-korry-81-is-dead-falsely-tied-to-chile-coup.html?pagewanted=1 | work=The New York Times | title=Edward Korry, 81, Is Dead; Falsely Tied to Chile Coup | first=David | last=Stout | date=January 30, 2003 | access-date=May 5, 2010 | url-status=live | archive-url=https://web.archive.org/web/20130512023248/http://www.nytimes.com/2003/01/30/world/edward-korry-81-is-dead-falsely-tied-to-chile-coup.html?pagewanted=1 | archive-date=May 12, 2013 }}</ref><ref>[http://www.democracynow.org/blog/2013/9/10/the_pinochet_file_how_us_politicians_banks_corporations_aided_chilean_coup_dictatorship The Pinochet File: How U.S. Politicians, Banks and Corporations Aided Chilean Coup, Dictatorship] {{webarchive|url=https://web.archive.org/web/20150912170956/http://www.democracynow.org/blog/2013/9/10/the_pinochet_file_how_us_politicians_banks_corporations_aided_chilean_coup_dictatorship |date=2015-09-12 }}. ''[[Democracy Now!]]'' September 10, 2013.</ref> On September 28, 1973, an ITT building in New York City was bombed by the [[Weather Underground]] for involvement in the coup d'état.<ref>{{cite news | url=https://select.nytimes.com/gst/abstract.html?res=FB0815FA3554137A93CBAB1782D85F478785F9 | work=The New York Times | title=I.T.T. OFFICE HERE DAMAGED BY BOMB; Caller Linked Explosion at Latin-American Section to 'Crimes in Chile' I.T.T. Latin-American Office on Madison Ave. Damaged by Bomb Fire in Rome Office Bombing on the Coast Rally the Opponents | date=September 29, 1973 | access-date=May 5, 2010 | first=Paul L. | last=Montgomery | url-status=live | archive-url=https://web.archive.org/web/20110512100123/http://select.nytimes.com/gst/abstract.html?res=FB0815FA3554137A93CBAB1782D85F478785F9 | archive-date=May 12, 2011 }}</ref><ref>{{Cite book |last1=Ayers |first1=Bill |url=https://books.google.com/books?id=X2OJhrWo6PcC&dq=itt+bomb+1973&pg=PT257 |title=Sing a Battle Song: The Revolutionary Poetry, Statements, and Communiques of the Weather Underground 1970-1974 |last2=Dohrn |first2=Bernardine |last3=Jones |first3=Jeff |date=2011-01-04 |publisher=Seven Stories Press |isbn=978-1-58322-965-1 |pages=257 |language=en}}</ref>

=== Post-Geneen: Hamilton and Araskog ===
In March 1977, Lyman C. Hamilton was appointed CEO, and Geneen became chairman of the board. In June 1979, while Hamilton was in Asia, Geneen became aware of Hamilton's plans to divest ITT's European consumer goods business, and lobbied his fellow board members to dismiss Hamilton. In July 1979, [[Rand Araskog]] became CEO. Shortly thereafter, Araskog insisted that the board remove Geneen as Chairman, though Geneen remained on the board for four more years.<ref>Wasserstein, Bruce. [https://books.google.com/books?id=WUr2ZxpZ8DIC&dq=itt+geneen+araskog&pg=PT200 ''Big deal: the battle for control of America's leading corporations'']</ref><ref>{{Cite news | url=https://www.latimes.com/archives/la-xpm-1997-nov-23-me-56924-story.html | title=Obituary: Harold Geneen, 87; Led ITT's Growth for 18 Years | date=23 November 1997 | agency=Associated Press | newspaper=The New York Times | url-status=live | archive-url=http://archive.wikiwix.com/cache/20160327084356/http://articles.latimes.com/1997/nov/23/local/me-56924 | archive-date=27 March 2016 }}</ref>

Araskog over the next two decades dismantled much of ITT, selling most of its holdings.

Starting in 1977, ITT set out to develop an ambitious new [[Telephone exchange#Digital switches|Digital Telephone Exchange]], System 1240 (later [[ITT System 12|System 12]]),<ref>Viswanathan, T. [https://books.google.com/books?id=ghCiNHzWvL4C&dq=itt+system+1240&pg=PA225 ''Telecommunication Switching Systems and Networks''], p.225.</ref><ref>[http://www.freepatentsonline.com/4201891.html US Patent 4,201,891] at freepatentsonline.com</ref> which reportedly cost US$1 billion.<ref>[http://www.encyclopedia.com/topic/International_Telephone__Telegraph_Corp.aspx International Telephone Telegraph Corp] at encyclopedia.com</ref> According to ''[[Fortune (magazine)|Fortune]]'' in 1985, Araskog directed the company's efforts towards a relentless pursuit of developing and promoting System 12, while channeling profits from successful ventures into fulfilling System 12's voracious demands.<ref>{{cite news | first1=Myron | last1=Magnet | author2=Andrew Evan Serwer | url=https://money.cnn.com/magazines/fortune/fortune_archive/1985/11/11/66595/index.htm | title=IS ITT FIGHTING SHADOWS -- OR RAIDERS? | journal=Fortune | date=11 November 1985 | url-status=live | archive-url=https://web.archive.org/web/20140429045738/http://money.cnn.com/magazines/fortune/fortune_archive/1985/11/11/66595/index.htm | archive-date=29 April 2014 }}</ref> System 12 was intended to operate in all markets, and in all modes, from local switches to long distance.<ref name = "Chapter IX-7">{{cite book | chapter-url=https://books.google.com/books?id=07NmhqkOqwsC&q=itt+alcatel+system+12&pg=PA415 | title=100 Years of Telephone Switching | chapter=IX-7: "The ITT (now Alcatel) System 12" | first1=Robert J. | last1=Chapuis | first2=Amos E. Jr. | last2=Joel | year=2003 | publisher=IOS Press |isbn=978-1-58603-372-9 }}</ref> The design was done at the Advanced Technology Center ([[Stamford, Connecticut]] and then [[Shelton, Connecticut]]). Manufacturing was by ITT's subsidiaries, such as [[Bell Telephone Manufacturing Company|BTM]] in [[Belgium]], where the first production system was installed at [[Brecht, Belgium|Brecht]], in August 1982.<ref name = "Chapter IX-7" /> Initial sales, particularly in Europe and Mexico, were strong, but the new system took longer than expected to integrate, with further losses.<ref>[https://www.latimes.com/archives/la-xpm-1985-11-05-fi-4452-story.html "ITT Earnings Decline 33% for 3rd Quarter"], ''Los Angeles Times'', 5 November 1985.</ref> Against the advice of headquarters, ITT Telecommunications ([[Kellogg Switchboard & Supply Company|ITT Kellogg]]) in Raleigh, North Carolina undertook the conversion in the US market,<ref>{{cite book| title=Managing Across Borders | first1=Christopher A. | last1=Bartlett | author-link1= Christopher A. Bartlett | first2= Sumantra| last2=Ghoshal | publisher= Harvard Business School Press | edition = 2 | year = 2002 |isbn=978-1-57851-707-7 }}</ref> and although sales were announced in 1984<ref>[https://www.nytimes.com/1984/06/26/business/itt-telecom.html ITT Telecom] {{webarchive|url=https://web.archive.org/web/20161220060341/http://www.nytimes.com/1984/06/26/business/itt-telecom.html |date=2016-12-20 }}, ''The New York Times'', 26 June 1984.</ref> and 1985,<ref>[https://www.nytimes.com/1985/03/21/business/itt-makes-sale-to-southern-bell.html "ITT Makes Sale To Southern Bell"] {{webarchive|url=https://web.archive.org/web/20161220060440/http://www.nytimes.com/1985/03/21/business/itt-makes-sale-to-southern-bell.html |date=2016-12-20 }}, ''The New York Times'', 21 March 1985.</ref> the attempt ultimately failed, in early 1986.<ref>[http://www.frankoverstreet.com/pages/co/itt-system-12.html ITT System 12] {{webarchive|url=https://web.archive.org/web/20160920030609/http://www.frankoverstreet.com/pages/co/itt-system-12.html |date=2016-09-20 }} at frankoverstreet.com</ref><ref>Hinman, Catherine.[https://www.orlandosentinel.com/1986/03/14/itt-division-in-brevard-will-furlough-60/ "ITT Division In Brevard Will Furlough 60"], ''Orlando Sentinel'', 14 March 1986.</ref>

ITT divested its global telecommunications product ventures, such as [[Kellogg Switchboard and Supply Company|ITT Kellogg]], to [[Alcatel-Alsthom|Alcatel Alsthom]], a subsidiary of Compagnie Générale d'Electricité (CGE), resulting in the establishment of Alcatel N.V. (Netherlands) in 1986. This transaction positioned Alcatel N.V. as the world's second-largest telecommunications company at that time.<ref>[http://www.alcatel-lucent.com/wps/portal/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w39fEESYGYRq6m-pEoYgbxjggRX4_83FT9IH1v_QD9gtzQiHJHR0UAHSvGjw!!/delta/base64xml/L3dJdyEvd0ZNQUFzQUMvNElVRS82X0FfSUJI Alcatel-Lucent Timeline] {{webarchive|url=https://web.archive.org/web/20120203104316/http://www.alcatel-lucent.com/wps/portal/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLd4w39fEESYGYRq6m-pEoYgbxjggRX4_83FT9IH1v_QD9gtzQiHJHR0UAHSvGjw!!/delta/base64xml/L3dJdyEvd0ZNQUFzQUMvNElVRS82X0FfSUJI |date=2012-02-03 }} at alcatel-lucent.com</ref><ref>[https://www.fundinguniverse.com/company-histories/Alcatel-SA-Company-History.html Alcatel SA Company History] {{webarchive|url=https://web.archive.org/web/20120122173932/http://www.fundinguniverse.com/company-histories/Alcatel-SA-Company-History.html |date=2012-01-22 }} at Funding Universe</ref>  Initially, ITT retained a 37% ownership stake, but in March 1992, it proceeded to sell off its remaining 30%, effectively ceasing its participation in the telephone industry.<ref>[https://www.nytimes.com/1992/03/04/business/company-news-itt-accepts-3.6-billion-alcatel-sale.html "ITT Accepts $3.6 Billion Alcatel Sale"] {{webarchive|url=https://web.archive.org/web/20160306022701/http://www.nytimes.com/1992/03/04/business/company-news-itt-accepts-3.6-billion-alcatel-sale.html|date=2016-03-06}}, ''The New York Times'', 4 March 1992.</ref> In 2006, Alcatel Alsthom S.A. acquired with [[Lucent]] to form [[Alcatel-Lucent]].

[[ITT Technical Institute|ITT Educational Services, Inc.]] (ESI) was spun off through an [[Initial public offering|IPO]] in 1994, with ITT as an 83% shareholder (in September 2016, ESI announced plans to close all of its 130 Technical Institutes in 38 states because their students were no longer eligible for federal aid<ref>{{cite web |url=http://www.dailynews.com/social-affairs/20160906/itt-tech-closes-its-doors-blaming-unconstitutional-us-sanctions |title=ITT Tech closes its doors, blaming 'unconstitutional' US sanctions |website=[[Los Angeles Daily News]] |access-date=2016-09-13 |url-status=live |archive-url=https://web.archive.org/web/20160908181428/http://www.dailynews.com/social-affairs/20160906/itt-tech-closes-its-doors-blaming-unconstitutional-us-sanctions |archive-date=2016-09-08 |date=2016-09-06 }} ITT Tech closes its doors, blaming ‘unconstitutional’ US sanctions</ref>).  ITT merged its long-distance division with [[Metromedia]] Long Distance in March 1989, creating ''Metromedia-ITT''.<ref>[https://www.nytimes.com/1989/03/16/business/company-news-metromedia-deal-for-2-itt-units.html "COMPANY NEWS; Metromedia Deal For 2 ITT Units"] {{webarchive|url=https://web.archive.org/web/20171219140626/http://www.nytimes.com/1989/03/16/business/company-news-metromedia-deal-for-2-itt-units.html |date=2017-12-19 }}, ''The New York Times'', 16 March 1989.</ref> Metromedia-ITT would eventually be acquired by Long Distance Discount Services, Inc. (LDDS) in 1993. LDDS would later change its name to [[MCI Inc.|WorldCom]] in 1995.

=== 1995 breakup ===
In 1995, with Araskog still at the helm, ITT split into three separate public companies:
* '''ITT Corp.''' – In 1997, ITT Corp. completed a merger with [[Starwood Hotels and Resorts|Starwood]], which wanted to acquire [[Sheraton Hotels and Resorts]]. Starwood sold ITT World Directories to [[Verenigde Nederlandse Uitgeverijen|VNU]].<ref>{{Cite news| issn = 0362-4331| title = Company News; Starwood Lodging in $2.1 Billion Deal with Vnu| work = The New York Times| access-date = 2018-05-29| date = 1997-12-19| url = https://www.nytimes.com/1997/12/19/business/company-news-starwood-lodging-in-2.1-billion-deal-with-vnu.html}}</ref> ITT completely divested from ITT/ESI by 1999, but continued to license the [[ITT Technical Institute]] name to ESI<ref>[http://www.ittesi.com/ireye/ir_site.zhtml?ticker=ESI&script=1801 Webpage] at ITTESI.com {{webarchive |url=https://web.archive.org/web/20061022125653/http://www.ittesi.com/ireye/ir_site.zhtml?ticker=ESI&script=1801 |date=October 22, 2006 }}</ref> until its demise in 2016.<ref>{{Cite news | url = https://gizmodo.com/itt-is-officially-closing-1786243058 | first = Michael | last = Nunez | title = ITT Tech Is Officially Closing | newspaper = [[Gizmodo]] | date = September 6, 2016 | access-date = September 6, 2016 | url-status = live | archive-url = https://web.archive.org/web/20160906125752/http://gizmodo.com/itt-is-officially-closing-1786243058 | archive-date = September 6, 2016 }}</ref> Also in 1999, ITT Corp. dropped the ITT name in favor of [[Starwood Hotels and Resorts|Starwood]].<ref>{{cite web|url=http://arbiter.wipo.int/domains/decisions/html/2001/d2001-0166.html|title=WIPO Domain Name Decision: D2001-0166|first=Arbitration and Mediation|last=Center|url-status=live|archive-url=https://web.archive.org/web/20010610031407/http://arbiter.wipo.int/domains/decisions/html/2001/d2001-0166.html|archive-date=2001-06-10}}</ref>
* '''ITT Hartford''' – Today, ITT Hartford is still a major insurance company, although it has dropped the ITT from its name altogether. The company is now known as [[The Hartford|The Hartford Financial Services Group, Inc.]]
* '''ITT Industries''' – ITT operated under this name until 2006 and is a major manufacturing and [[defense contractor]] business.
** On July 1, 2006, ITT Industries changed its name to ITT Corporation as a result of its shareholders vote on May 9, 2006.

=== Criminal prosecution ===
In March 2007, ITT Corporation became the first major defense contractor to be convicted for [[Corporate crime|criminal violations]] of the U.S. [[Arms Export Control Act]]. The fines resulted from ITT's [[outsourcing]] program, in which they transferred [[night vision goggles]] and [[classified information]] about [[countermeasure]]s against [[laser weapon]]s, including light interference filters, to engineers in [[Singapore]], the [[People's Republic of China]], and the [[United Kingdom]].<ref>{{cite news|author=Lindsey, Sue|title=ITT Fined $100M for Illegal Tech Exports|url=https://www.foxnews.com/printer_friendly_wires/2007Mar27/0,4675,ITTFine,00.html|agency=[[Associated Press]]|work=[[Fox News]]|date=March 27, 2007}}</ref> They were fined US$100 million although they were also given the option of spending half of that sum on [[research and development]] of new night vision technology. The United States government will assume rights to the resulting intellectual property.<ref>Cullen, Drew. [https://www.theregister.co.uk/2007/03/27/itt_fined_for_illegal_exports/ "ITT Fined for Illegal Exports"] {{webarchive|url=http://archive.wikiwix.com/cache/20110224091156/https://www.theregister.co.uk/2007/03/27/itt_fined_for_illegal_exports/ |date=2011-02-24 }}, ''[[The Register]]'', 27 March 2007.</ref><ref>[http://pmddtc.state.gov/compliance/consent_agreements/pdf/ITTcorp_ConsentAgreement.pdf "Consent Agreement, 2007: ITT Corporation"] {{webarchive|url=https://web.archive.org/web/20091010080757/http://www.pmddtc.state.gov/compliance/consent_agreements/pdf/ITTcorp_ConsentAgreement.pdf |date=2009-10-10 }} [[U.S. State Department]], 2007.</ref>

In its investigation and subsequent ruling, the [[United States Department of Justice]] found that the corporation went to significant lengths to circumvent rules regarding the exports, including setting up a [[front company]]. According to [[U.S. Attorney]] [[John L. Brownlee]], the company fought the investigation in order "to essentially run out the clock on the statute of limitations."<ref>{{cite news | url=https://money.cnn.com/2007/03/27/news/international/itt_export/index.htm?postversion=2007032713 | work=CNN | title=ITT fined $100 million for illegal exports | date=27 March 2007 | access-date=May 5, 2010 | url-status=live | archive-url=https://web.archive.org/web/20100328191637/http://money.cnn.com/2007/03/27/news/international/itt_export/index.htm?postversion=2007032713 | archive-date=28 March 2010 }}</ref>

===Further corporate acquisitions===
An agreement was reached on June 26, 2007 for ITT to acquire the privately held ''International Motion Control'' (IMC) for $395 million. The deal was closed and finalized in September 2007. An announcement was made September 14, 2010 to close the Cleveland site.

An agreement was reached September 18, 2007 for ITT to buy [[EDO Corporation]] for $1.7 billion.<ref>{{cite web|url=http://www.defenseindustrydaily.com/itt-corp-acquires-edo-in-17b-deal-03817/|title=ITT Corp. Acquires EDO in $1.7B Deal|url-status=live|archive-url=https://web.archive.org/web/20160817112647/http://www.defenseindustrydaily.com/itt-corp-acquires-edo-in-17b-deal-03817/|archive-date=2016-08-17}}</ref> After EDO shareholders' approval, the deal was closed and finalized on December 20, 2007.

On April 16, 2009, ITT announced it has signed a definitive agreement to acquire Laing GmbH of Germany, a privately held leading producer of energy-efficient [[circulator pump]]s primarily used in residential and commercial plumbing and [[Heating, ventilation, and air conditioning|heating, ventilating and air conditioning (HVAC)]] systems.

=== 2011 breakup ===
On January 12, 2011, ITT announced a transformation to separate the remaining company into three [[publicly traded]] independent companies.<ref name="reuters.com"/> On July 14, 2011, ITT announced the names of the three companies: 

* The Industrial Process & Flow Control division would retain the name ITT Corporation.
** ITT Corporation changed its name to ITT Inc. in 2016.
* The Water & Waste Water division became [[Xylem Inc.]], symbol XYL (a reference to [[xylem]] tissue in plants).
* The Defense division became [[Exelis Inc.]], symbol XLS. Exelis was acquired by [[Harris Corporation]] in 2015.

Then-ITT stockholders subsequently owned shares in all three companies following the spinoff.<ref name="Jacobs"/>