United Technologies confirms abortive discussions with Honeywell

The US industrial conglomerate United Technologies confirmed Monday night have been discussions for a merger with its competitor Honeywell.
“United Technologies today confirmed that it has previously been preliminary and exploratory talks to discuss various potential options for collaboration with Honeywell. However United Technologies has ever explored these options in detail “the group said in a statement, citing the risk of opposition from competition authorities or customers of both groups, as well as disagreements over valuation.

Aircraft manufacturers Airbus and Boeing, in particular, to provide for the two groups, which also have similar activities in equipment for the building.

During the trading session on Monday, the action United Technologies surged 4.69% to 92.37 dollars after the CNBC financial television channel reported on discussions between the two groups that would be required in recent months. Honeywell has lost his share 1.96% to 105.17 dollars.

United Technologies (UTC) has the particular aircraft Pratt & Whitney engines and Otis elevators.

Honeywell and UTC had already discussed a merger in 2000, but the first had finally favored a merger with General Electric. European competition authorities, however, were opposed in 2001 the rapprochement between Honeywell and General Electric.

UTC has in turn sold last year at Lockheed Martin group’s Sikorsky division (helicopters).

“Management and the United Technologies Board continues to believe that its brand of components and generate global size and continue to generate strong cash flow throughout the economic cycle, and that its activities are well positioned to clear the long-term value for its shareholders, “the statement concluded.

Both groups would have a combined turnover of around $ 95 billion, for a market capitalization of nearly $ 160 billion and over 325,000 employees.

According to CNBC, is that Honeywell would have initiated the latest discussions but United Technologies had his side approached Honeywell before. The latter approach would include Honeywell was caused by the fact that the action of United Technologies lost over 12% of its value between early November and Friday while that Honeywell has remained stable over the same period, making the terms of a possible favorable to Honeywell merger.

Both groups had previously declined to comment on the information CNBC.

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