United Technologies: Here’s Comes Our Offensive Acquisition Strategy
United Technologies (NYSE:UTX) is getting ready to finance $20 billion for for a big purchase. Rumor has it that they want to acquire Tyco International (NYSE:TYC), whose shares are up 5.1% or Ingersoll-Rand (NYSE:IR) whose shares are up 5.4%.
Prospective takeover targets are Goodrich Corp (NYSE:GR), valued at almost $11billion and Rockwell Collins Inc. (NYSE:COL), valued at $8 billion. Other possible targets are Textron Inc. (NYSE:TXT) which is a Cessna aircraft maker, as well as Honeywell International (NYSE:HON).
“Chenevert, who came up through the company’s aerospace business and headed Pratt & Whitney before taking the top job at corporate, holds up his $1.8 billion acquisition of General Electric Co’s (NYSE:GE) security business as the sort of deal he would like to replicate in the near future. In 2008 United Tech made a hostile $2.64 billion takeover offer for Diebold Inc (NYSE:DBD), a maker of automated teller machines. That effort was ultimately fruitless, and Chenevert has since said he would be reluctant to go hostile again after that experience”, reports Reuters.
United Technologies’ stock is up 0.36% to $75.88 on the news. Shares are down 3.61% year to date. The stock has traded in a 52-week range between $67.12 and $91.83.