ITT Seeking Shareholders’ Support

Hotel and casino giant ITT Corp., fighting a $6.5-billion hostile takeover bid by Hilton Hotels Corp., is urging investors to stick with the company despite past disappointing stock performance. In a letter to shareholders in the company’s annual report, Chairman Rand Araskog said ITT is set to increase shareholder value by focusing on its core businesses. Beverly Hills-based Hilton is seeking to replace ITT’s board at the company’s as-yet-unscheduled 1997 annual shareholders meeting. Investors had seen ITT’s stock decline sharply in recent months due to competition and construction problems associated with an aggressive spending plan for its casino business. The stock traded at about $65 per share in June but had eroded to about $42.50 when Hilton made its offer in January. Hilton’s bid values the company at about $55 per share. Shares of New York-based ITT fell 12.5 cents to close at $58.75 on the New York Stock Exchange. The stock has held above the Hilton bid price on views that Hilton would have to raise the offer if it wants to acquire ITT.