ITT Proposes $4-Billion Fund for Acquisitions : Takeovers: The firm plans to shed units so it can buy media and entertainment firms.

ITT Corp. plans to raise about $4 billion to finance media and entertainment acquisitions by selling its commercial finance, installment lending and reinsurance units, a person close to the company said.

The New York-based conglomerate, which has businesses in auto parts, insurance and hotels, plans to keep its ITT Hartford insurance unit, according to the person who spoke on condition that he not be identified. The company’s board made the decision at a Monday meeting, he said.

The proposed sale is in line with the company’s plan to boost shareholder returns by shifting into industries that demand higher market values from investors, such as media and entertainment, analysts said.

“ITT is clearly looking to sell assets where the valuations in the marketplace are low, such as financial services, and is looking to move into areas where they can get a higher (price to earnings ratio) in the market,” said Phua Young, a Lehman Bros. analyst.

The company’s stock declined $1.50 to $80.125 on the New York Stock Exchange.

ITT, in partnership with Cablevision Systems Corp., entered the media and entertainment business in late August with its $1.075- billion purchase of New York’s Madison Square Garden from Viacom Inc. The Garden includes the nation’s largest regional cable television sports network, a 20,000-seat arena, a performance theater and the New York Knickerbockers and New York Rangers sports teams.

The company also is reportedly bidding to acquire General Electric Co.’s NBC television network.

The company’s ITT Sheraton hotel unit could get a price-to-earnings multiple of 20, or closer to that of rivals Marriott International Inc. and Hilton Hotels Corp., Young said. The same is true for entertainment companies, he said.