Some of the conglomerates developed as large firms acquired interests
in new areas of activity; others developed very rapidly through series of
financial transactions that built giant conglomerates from humble beginnings.
The latter development occurred with amazing speed during the 1960s as financiers took advantage of the stock exchange boom accompanying
the Vietnam War, acquiring or merging with company after company.
To take one very spectacular example, in just ten years Harold
Geneen transformed ITT from a loosely knit group of international telephone
companies into a centralized conglomerate with 331 subsidiaries
and another 771 subsidiaries of subsidiaries, with operations in seventy
countries. For eleven years, from 1959 to 1970, ITT climbed from fiftysecond
to ninth place on the Fortune list of top companies. As journalist
Anthony Sampson reports in his analysis of the affairs of ITT, Geneen's
spectacular success was paralleled in many other corporations. Gulf and
Western was quickly built up from a small firm making car fenders into a
conglomerate of 92 companies in a range of industries as diverse as mining,
sugar production, publishing, and show business. Litton Industries
developed from a million-dollar electronics firm into a conglomerate of
over 100 companies in less than ten years.
Some of the conglomerates developed as large firms acquired interests
in new areas of activity; others developed very rapidly through series of
financial transactions that built giant conglomerates from humble beginnings.
The latter development occurred with amazing speed during the 1960s as financiers took advantage of the stock exchange boom accompanying
the Vietnam War, acquiring or merging with company after company.
To take one very spectacular example, in just ten years Harold
Geneen transformed ITT from a loosely knit group of international telephone
companies into a centralized conglomerate with 331 subsidiaries
and another 771 subsidiaries of subsidiaries, with operations in seventy
countries. For eleven years, from 1959 to 1970, ITT climbed from fiftysecond
to ninth place on the Fortune list of top companies. As journalist
Anthony Sampson reports in his analysis of the affairs of ITT, Geneen's
spectacular success was paralleled in many other corporations. Gulf and
Western was quickly built up from a small firm making car fenders into a
conglomerate of 92 companies in a range of industries as diverse as mining,
sugar production, publishing, and show business. Litton Industries
developed from a million-dollar electronics firm into a conglomerate of
over 100 companies in less than ten years.
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