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ITT alters breakup plans
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September 30, 1997: 2:17 p.m. ET
Provision to stagger board eliminated; annual meeting set for Nov. 12
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NEW YORK (CNNfn) - ITT Corp. said Tuesday it has revised its comprehensive, three-way breakup plan to eliminate the provision to stagger the board of ITT Destinations -- the proposed gaming and hospitality company.
The provision to stagger the board was the key reason U.S. District Court Judge Philip Pro decided to grant Hilton Hotels Corp.'s request to block ITT's planned split.
The move will allow shareholders to evaluate the plan "purely based on economics," said Jim Gallagher, an ITT spokesman.
In addition, ITT has scheduled its annual shareholder meeting for Nov. 12. Shareholders of record as of Wednesday, Oct. 1, will be eligible to vote on whether or not to approve the ITT plan.
ITT proposed its split-up on July 16 as a defense against Hilton's $8.3 billion hostile bid. The reorganization called for only four of the 11 board seats to be up for reelection, making it more difficult for any suitor to gain control of the board. But Judge Pro late Monday ruled that specific part of the plan would "impede" shareholders.
Meanwhile, ITT reiterated that Hilton's offer of $70 a share is "inadequate" and that ITT management has no plans to meet with Chairman Stephen Bollenbach or other Hilton officials.
"There's nothing to talk about," Gallagher said. "Bollenbach has stated that Hilton will not raise their price above $70 a share,"
--Robert Liu
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