ITT, originally International Telephone and Telegraph, was a large conglomerate that owned a variety of businesses during the 1960s under Harold Geneen. In the 1970s ITT was forced to sell off the majority of its holdings and became a shell of its 1960s glory.

History

The company began as an operator of telephone monopolies outside of the United States, and purchased a number of European telephony patents.

Growth

In the 1930s, ITT purchased the German electronic companies Standard Elektrizitaetsgesellschaft and Mix & Genest, both international active companies.

During the 1950s, ITT purchased Philo Farnsworth's television company to break into the market. At that time Farnsworth was also developing the Fusor. In 1951, ITT bought a majority interest in the Kellogg Switchboard & Supply company (founded in 1897) and bought the remaining shares the next year. ITT changed the name to ITT Kellogg. After merging Federal Telephone and Radio Corporation into ITT Kellogg and combining manufacturing operations the name was changed again to ITT Telecommunications.

In 1959 Harold Geneen was elected as CEO. Using leveraged buyouts, he turned the minor building of the 1950s into a major force during the 1960s. In 1963, ITT attempted to purchase the television network ABC for $700 million. The deal was halted by federal antitrust regulators who feared ITT was growing too large. In order to continue growing while not running afoul of antitrust legislation, it moved to acquire companies outside of the telecommunications industry. Under Geneen, ITT bought over 300 companies in the 1960s, including some hostile takeovers. The deals included well-known businesses like the Sheraton Hotel chain, Wonder Bread maker Continental Baking, Hartford insurance company, and Avis Rent-a-Car. ITT also absorbed smaller operations in auto parts, energy, books, semiconductors and cosmetics.

ITT's sales grew from about $700 million in 1960 to about $8 billion in 1970, and its profit from $29 million to $550 million. However, when the higher interest rates started eating away at profits in the late 1960s, ITT's growth slowed considerably.

In 1970 ITT owned of 70% of Chitelco, the Chilean Telephone Company and funded El Mercurio, a Chilean right-wing newspaper. Classified documents released by the CIA in 2000 suggest that ITT financially helped opponents of Salvador Allende's government prepare a military coup (National Security Archives). On September 28, 1973, ITT's headquarters in New York City, New York was bombed by protesters for alleged involvement in the overthrow of the democratically elected government in Chile.

Geneen remained CEO of ITT until 1977 while many conglomerates had removed their CEOs due to lack of profits. His successor, Rand Araskog, dismantled much of ITT, selling most of its holdings, including the last of ITT's telecommunications businesses.

The business historian Robert Sobel published ITT: The Management of Opportunity in 1982.