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US: United Tech rejects Honeywell’s $90.7 billion offer

By  |  February 28, 2016

US industrial conglomerate United Technologies on Friday rejected a $90.7 billion offer by rival aerospace supplier Honeywell International, saying that pursuing a merger would be “irresponsible” toward its shareholders.

In an unusual move, the two companies sparred publicly about a deal that, if realized, would create one of the largest US companies with almost $100 billion in annual sales.

Major customers also weighed in, with Boeing saying it would careful scrutinize a deal and underscoring the need for “healthy competition” in its supply chain.

United Technologies said the two companies had talked about a possible combination for years.

But it said the regulatory environment had changed and a merger now would either be blocked outright, or any synergies would be far outweighed by regulatory delays, required divestitures, and customer concerns and concessions.

“It would be irresponsible for UTC to move forward with the proposed combination,” the company said in a regulatory filing.

Full content: The Wall Street Journal

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