Still, early results clearly point to 2011 being headed for an astronomical increase in this type of downsizing.

A 50-Year Saga

Fifty years ago, when the conglomerate age began, the trend was the opposite. In that era giant corporations like ITT could achieve diversification beyond the reach of most investors, supercharge their earnings growth through acquisition, and generate capital internally far more cheaply than they could obtain it in small, parochial markets.

Today investor diversification is easily achieved, with even emerging markets open to individuals by way of exchange-traded funds. Capital markets are mature and global. And earnings, always Wall Street's top concern, are more easily analyzed in a lean organization than a bloated one. So conglomerates are being marked down.

"The average conglomerate discount -- and the evidence is very strong -- is between 10% and 20%," says Anant Sundaram, a visiting professor at Dartmouth's Tuck School of Business. To eliminate it, corporations are streamlining -- ITT included.