US: Honeywell drops $90 billion United Technologies pursuit after impasse

Honeywell International Inc. said it would no longer pursue a combination with United Technologies due to the target company’s unwillingness to negotiate.

Honeywell “strongly disagrees” with United Technologies’ claim that a tie-up of the aerospace giants would run afoul of antitrust regulators and generate customer resistance, Honeywell said Tuesday in a statement. A deal would have created value for investors by combining complementary portfolios, the company said.

“We made a full and fair offer that would have greatly benefited both sets of shareowners,” Honeywell Chief Executive Officer David Cote said in the statement. “However, continuing to try to negotiate with an unwilling partner is inconsistent with our disciplined acquisition process.”

Honeywell approached United Technologies Feb. 19 about a tie-up that would create an aerospace and building-products behemoth with more than $90 billion in annual sales. Honeywell, based in Morris Plains, New Jersey, later released details of the $108-a-share offer, which it said would generate $3.5 billion of cost savings.

United Technologies rejected the proposal, saying it undervalued the company and would face heavy opposition from antitrust regulators.

Full content: The New York Times

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