
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, June 17, 1990                   TAG: 9006150797
SECTION: BUSINESS                    PAGE: C6   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

ITT TO SELL 7 PERCENT INTEREST IN ALCATEL

ITT Corp. said it will sell a 7 percent interest in Alcatel to its French joint venture partner, Compagnie Generale d'Electricite, for $640 million. ITT's share of the venture will be reduced to 30 percent.

The sale will have no effect on the Alcatel Cable Systems plant, a maker of optical fiber in Roanoke County, according to Frank Akers, business development manager.

ITT said it will use the after-tax capital gain of approximately $139 million to buy back more of its shares. Since 1987, ITT has repurchased 25 million of its shares.

Since Alcatel was formed three years ago, its shares have more than doubled in value, said Rand V. Araskog, ITT chairman. The company has grown rapidly in orders, sales and income, he said.

Akers said the market for optical fiber is growing by 10 to 15 percent a year. The product from the Roanoke plant is shipped to Alcatel's cable factory at Hickory, N.C., for sale to the Bell companies and independent telephone firms. Employment at the Roanoke plant continues at slightly more than 100 people, he said. - Staff report

by CNB