Editing ITT Inc. (section)

=== 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.