ITT, Racal, Siemens Form Joint Venture

ITT Industries Inc., Britain’s Racal Electronics and Germany’s Siemens said they have completed a joint venture to build a military communications system for Britain that is initially valued at $2.4 billion and could reach $6 billion. White Plains, N.Y.-based ITT Industries’ Defense & Electronics division would own 40% of the venture, which is known as Archer Communications Systems Ltd., with Racal and the Siemens Plessey unit of Siemens each holding 30%. The project includes radios, computers and navigation equipment and is the most extensive military communications project initiated by Britain in the last 25 years. ITT Industries’ stock rose 56 cents to close at $31.31 on the NYSE, and Racal’s American depository receipts, each of which represents two ordinary shares, fell 88 cents to close at $7.13. Similar shares of Siemens, each of which represents one ordinary share, fell $1.50 to close at $61.50.