ITT TO SELL ALCATEL STAKE FOR $3.6 BILLION
ITT TO SELL ALCATEL STAKE FOR $3.6 BILLION NEW YORK, March 3 /PRNewswire/ -- ITT Corporation (NYSE: ITT) today
confirmed the announcement made in Paris this morning by Alcatel Alsthom that an agreement has been signed for the sale of ITT's 30 percent stake in Alcatel N.V. to its joint venture partner.
The value of the transaction to ITT is estimated at $3.6 billion. ITT will receive $1.0 billion in cash at the closing of the sale expected to be at the end of June; two payments totalling approximately $1.6 billion, in 1993 and 1994, and 7 percent, or 9.1 million newly issued shares, of Alcatel Alsthom, valued at approximately $1 billion at today's market price. Rand V. Araskog, ITT's chairman, president and chief executive, will be proposed as a member of the board of directors of Alcatel Alsthom at the next Board meeting. ITT also confirmed its agreement to retain the 7 percent interest in Alcatel Alsthom for 5 years, unless otherwise agreed upon by Alcatel Alsthom. By telephone from Paris, Araskog said, "We have been very pleased with our investment in Alcatel since the beginning of the joint venture at the end of 1986." "Our new ownership position in Alcatel Alsthom allows us to maintain an important presence in a powerful and successful publicly traded international company," Araskog concluded. -0- 3/3/92 /CONTACT: Jim Gallagher of ITT, 212-258-1261/ (ITT) CO: ITT Corporation; Alcatel N.V. ST: New York IN: SU: TS -- NY015 -- 4270 03/03/92 07:18 EST
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|Date:||Mar 3, 1992|
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