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@jasaday.bsky.social

In 1971 ITT planned to take over the $1.5 billion Hartford Fire Insurance Company—the largest merger in corporate history. The antitrust division of the Justice Department moved to prosecute ITT for violating the antitrust laws.

L. Mao Hubbard

@jasaday.bsky.social

However, the prosecution did not take place and ITT was allowed to merge with Hartford. It was all settled out of court, in a secret arrangement in which ITT agreed to donate $400,000 to the Republican party. It seemed that Richard Kleindienst, deputy Attorney General,

L. Mao Hubbard

@jasaday.bsky.social

had six meetings with an ITT director named Felix Rohatyn, and then brought in the head of the antitrust division, Richard McLaren, who was persuaded by Rohatyn that to stop the merger would cause a "hardship" for ITT stockholders. McLaren agreed. He was later appointed a federal judge.

21/10/26, 6:12 am0 reposts0 likes

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