ITT Corp to Split Into Three Publicly-Traded Companies (ITT)

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Engineering and manufacturing company ITT Corporation ( ITT ) on Wednesday unveiled plans to split its company into three separate entities, which will all trade independently as public companies.

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 ( ITT ) 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 ( ITT ) is not recommended at this time, holding a 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 .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: ITT

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