ITT Sets Record in Junk-Bond Sale
ITT Corp.’s overseas phone directory units raised a total of $550 million in the U.S. and Europe, including a record-breaking junk-bond sale, in ITT’s efforts to fend off Hilton Hotels Corp.’s $11.5-billion hostile takeover.
ITT Promedia sold $325 million of 10-year notes--Europe’s biggest junk-bond sale--and ITT Publimedia issued $225 million of 10-year securities. Proceeds from the sales will be paid to the parent as ITT raises money to finance its plan to split into three separate companies, according to Standard & Poor’s Corp.
ITT plans to repurchase a quarter of its common stock at $70 apiece and take on $2 billion of debt in order to split into a casino hotel company, a telephone directory publishing company and a technical-school operator.
Hilton Hotels, based in Beverly Hills, has asked a federal judge to block the breakup plans, arguing that ITT needs to hold a shareholder vote to ratify the move. A ruling is expected on Sept. 29.
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