Engineering and manufacturing company ITT Corporation (
) on Wednesday unveiled plans to split its company into three
separate entities, which will all trade independently as public
ITT said it would create tax-fee spin-offs of its water-related
businesses, defense segment, and industrial engineering component
into three separate companies.
Under the plan, current ITT shareholders will receive shares in
all three corporations once the transaction is completed.
CEO Steve Loranger commented, "In recent years, we have nurtured
and grown our unique portfolio of businesses, which are now poised
to emerge as three strong and focused standalone companies, with
leading products and market positions, highly skilled employees and
tremendous value-generating potential for shareowners. In today's
business environment, we believe this strategy is the best approach
to unlock this value and position the three businesses to grow and
serve customers as focused global companies. Each new company will
be more nimble and able to build stronger, more intimate customer
relationships to accelerate mutual success."
ITT Corp shares rose $9.97, or +19%, in premarket trading
Wednesday following the announcement
The Bottom Line
Shares of ITT Corp (
) have a 1.89% dividend yield, based on last night's closing stock
price of $52.78. The shares are pushing through overhead resistance
of $60 this morning. If that level can be sustained, we we then see
the $65-$67 price levels as the next level of resistance.
ITT Corporation (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here
Created by Dividend.com