ITT to Sell Remaining Stake in Alcatel

ITT Corp. said it will sell its remaining stake in French telecommunications company Alcatel Alsthom for about $530 million, or a 25% premium, as it fights Hilton Hotels Corp.’s hostile takeover bid. The decision to sell the 4.5 million shares comes more than a month after New York-based ITT sold 3 million Alcatel shares. Earlier this month, ITT agreed to sell its 50% interest in Madison Square Garden and the arena’s sports teams and cable network to Cablevision Systems Corp. for $650 million. The moves, which will raise about $1.48 billion, are part of ITT’s plan to thwart Beverly Hills-based Hilton’s $10.5-billion offer. ITT shares fell 25 cents to close at $58.875; Hilton shares fell 25 cents to close at $24.25. Both trade on the NYSE.