Itt Sheds Assets To Fend Off Hilton

ITT Corp. is shedding more assets in its effort to fend off hostile bidder Hilton Hotels Corp. This time, the embattled company is selling some of its Sheraton hotels.

ITT announced Monday it would raise $200 million with the sale of five hotels to FelCor Suites Hotels Inc., a deal that marks the birth of a long-term strategic alliance with FelCor. ITT will continue to manage the hotels for 20 years.

The company said it had been in talks for more than a year with FelCor, a real estate investment trust that ranks as the largest single owner of Embassy Suites hotels.

But the deal’s true meaning stems from Hilton Hotels’ $6.5 billion takeover bid for ITT, which it launched on Jan. 27 in the hopes of merging the two companies’ hotel and gaming business. ITT also owns Caesars World casinos.

Since the hostile bid began, ITT has been shedding assets not central to its main businesses to drive up its stock price and hold off Hilton.