United Technologies CorporationNYSE
Advanced Chart
  • Thu, Mar. 10, 6:25 PM
    • Even though it gave a stiff-arm to a huge acquisition proposal from Honeywell (HON -0.5%), United Technologies (UTX -0.4%) says it would listen to another big merger offer.
    • UTX had rebuffed a reported megadeal from Honeywell, saying the regulatory issues in combining two companies each worth more than $70B (and supplying so much of each plane) would make it a nonstarter.
    • "I wouldn't be afraid to do a big deal," CEO Gregory Hayes said at an investor meeting today. But "it's got to be something that's actionable ... and the regulatory hurdles have to be manageable."
    • Without a deal, UTX is poised for "huge growth," he says, but there may be appetite in its commercial business (elevators, fire, security systems) and perhaps its aerospace systems business for a large deal.
    • Investing in aerospace systems and Pratt & Whitney has set up those divisions for "nearly a trillion" dollars in sales over the next 25 years, Hayes said.
    • Previously: Honeywell: Regulation not an obstacle to United Tech merger (Feb. 23 2016)
    • Previously: Honeywell closes lower on report that UTX rebuffed merger as unlikely (Feb. 22 2016)
    • Previously: CNBC: Honeywell, United Technologies discussed megamerger (Feb. 22 2016)
    | Thu, Mar. 10, 6:25 PM | 4 Comments
  • Tue, Mar. 1, 11:23 AM
    • "This is the appropriate outcome given the strong regulatory obstacles, negative customer reaction and the potential for a protracted review process that would have destroyed shareholder value," the company said in a statement.
    • "UTC will remain laser focused on our key priorities - program execution, innovation, cost reduction and disciplined capital allocation. Our outlook remains strong and our industry-leading franchises are well positioned to deliver strong earnings growth and create shareholder value well into the future."
    • Previously: Honeywell drops bid for UTX (Mar. 01 2016)
    | Tue, Mar. 1, 11:23 AM | 12 Comments
  • Tue, Mar. 1, 9:13 AM
    • Though strongly disagreeing with United Technologies' (NYSE:UTX) concerns about regulatory and consumer risks to the deal, Honeywell (NYSE:HON) - recognizing the target's unwillingness to engage - is dropping its merger ambitions.
    • HON +2.5%, UTX -4.3% premarket
    | Tue, Mar. 1, 9:13 AM | 12 Comments
  • Fri, Feb. 26, 3:12 PM
    • According to a regulatory filing, Honeywell (HON -0.7%) CEO David Cote sold about 345K shares worth roughly $36M in company stock on Feb. 16 - three days prior to his company approaching United Technologies (UTX -0.9%) with a buyout offer.
    • The filing doesn't indicate whether the sale was part of a pre-arranged plan.
    • Honeywell's stock price sunk about 7% following the leak of its offer a few days later.
    • Cote has been a fairly active seller of company stock over the past year, unloading nearly 900K shares.
    • Previously: Honeywell says it offered to buy United Technologies for $108/share (Feb. 26)
    | Fri, Feb. 26, 3:12 PM | 19 Comments
  • Fri, Feb. 26, 2:11 PM
    • United Technologies (UTX -1.2%) issues a letter and presentation responding to Honeywell's (HON -0.1%) earlier presentation, saying HON's takeover proposal "grossly undervalues" the company.
    • Even if a deal materializes, UTX says regulatory delays "would ultimately destroy shareholder value."
    • HON said earlier that it had offered to buy UTX for $108/share, valuing the company at ~$90.7B.
    • UTX resumes trading after a brief halt, turning lower.
    | Fri, Feb. 26, 2:11 PM | 64 Comments
  • Fri, Feb. 26, 9:49 AM
    • Honeywell (HON -0.2%) releases details of its rebuffed offer for United Technologies (UTX +0.7%), saying it was seeking to re-engage on a possible transaction.
    • HON said in a presentation to UTX Chairman Edward Kangas and CEO Gregory Hayes that its proposed offer of $108/share would lead to cost savings of $3.5B in four years.
    • Hayes said earlier this week that antitrust hurdles and customer resistance would make a merger too difficult to fulfill.
    | Fri, Feb. 26, 9:49 AM | 17 Comments
  • Wed, Feb. 24, 12:40 PM
    | Wed, Feb. 24, 12:40 PM | 2 Comments
  • Tue, Feb. 23, 3:59 PM
    • A new statement from Honeywell (HON -0.9%) takes an opposite stance from would-be merger partner United Technologies (UTX -0.9%), suggesting it doesn't see regulatory issues as any obstacle to what would be a giant deal.
    • "The value creation from a combination is significant, including the benefits of $3.5 billion in annualized cost synergies," Honeywell says in a statement. "We do not see the regulatory process as a material obstacle to a transaction."
    • Shares jumped for both companies yesterday on news that the two had talked about merging into what would be an aerospace giant, though United Tech dampened speculation with statements saying it thought a merger wouldn't pass antitrust muster.
    • "A combined Honeywell and United Technologies would maintain a strong investment grade rating, and have higher free cash flow and a rapid deleveraging profile," Honeywell says. "We would not and will not pursue a transaction that is not in the best interest of our shareowners, consistent with our successful and disciplined capital deployment framework."
    • Previously: United Tech CEO discusses Honeywell merger talks (Feb. 23 2016)
    • Previously: Honeywell closes lower on report that UTX rebuffed merger as unlikely (Feb. 22 2016)
    • Previously: CNBC: Honeywell, United Technologies discussed megamerger (Feb. 22 2016)
    | Tue, Feb. 23, 3:59 PM | 21 Comments
  • Mon, Feb. 22, 5:35 PM
    • After reports of megamerger discussions goosed the stocks of Honeywell (HON -1.9%) and United Technologies (UTX +4.8%) earlier today, Honeywell dropped to close in the red on further reports that UTX didn't think the deal would get an antitrust OK.
    • Each conglomerate is worth more than $70B and makes a wide variety of goods, but they have a heavy overlap in aerospace.
    • Regulators would likely be as concerned with the deal as supply customers Boeing and Airbus. "There is no chance the government will give them a pass,” said University of Michigan professor Erik Gordon.
    • Honeywell had floated a merger with United Tech in 2000 under different leadership before GE jumped in with a $40B deal to buy Honeywell -- which was blocked by European regulators in 2001.
    • Updated 7:40 p.m.: UTX confirms it never explored options due to "significant regulatory obstacles, customer concerns and valuation issues"; In particular, UTX said "combining two of the world's largest players in the aerospace and commercial building segments would face insurmountable regulatory obstacles and strong customer opposition, and could either be blocked outright or conditioned on significant divestitures after a lengthy and disruptive review period that would destroy shareholder value."
    • Previously: CNBC: Honeywell, United Technologies discussed megamerger (Feb. 22 2016)
    | Mon, Feb. 22, 5:35 PM | 17 Comments
  • Nov. 3, 2015, 2:59 PM
    • Lockheed Martin (LMT -0.6%) says it has received final regulatory approval from China for its $9B acquisition of Sikorsky Aircraft from United Technologies (UTX +0.8%), and expects the deal to close on Friday.
    • Separately, Bloomberg reports LMT is exploring a sale of $600M in alternative assets to reduce exposure to P-E funds; the asset portfolio is said to be held by a subsidiary that manages employees’ post-retirement plans, and a deal may be completed by year-end.
    • S&P downgraded LMT’s debt rating on Monday, citing its "expectation of a significant deteriorating in Lockheed’s forecasted credit metrics” as the company continues returning excess cash to shareholders despite the debt-financed acquisition of Sikorsky.
    | Nov. 3, 2015, 2:59 PM | 5 Comments
  • Oct. 15, 2015, 4:51 AM
    • According to Reuters sources, Lockheed Martin's (NYSE:LMT) purchase of Sikorsky Aircraft from United Technologies (NYSE:UTX) could close by late October or early November, well before the initial year-end target.
    • Lockheed announced last month that officials in the U.S., South Korea and Japan had cleared the $9B acquisition, but was still waiting for other regulatory approvals.
    • China and the European Union are expected to support the deal next week.
    | Oct. 15, 2015, 4:51 AM | 1 Comment
  • Sep. 24, 2015, 9:51 AM
    • U.S. officials have approved Lockheed Martin's (LMT -1.3%) $9B takeover of United Technologies' (UTX -1.3%) Sikorsky Aircraft unit.
    • Authorities in Japan and South Korea previously cleared the deal, but the company is still waiting for other regulatory approvals.
    • Multiple sources say Lockheed is now likely to close the acquisition well before the end of 2015, as initially expected.
    | Sep. 24, 2015, 9:51 AM
  • Aug. 20, 2015, 12:21 PM
    • The WSJ reports United Technologies (UTX -1.6%) is in talks to buy HVAC/air quality/security system maker Nortek (NASDAQ:NTK).
    • Nortek spiked higher on the report before getting halted.
    • Update (12:23PM ET): Nortek has resumed trading, and is now up 17.6%.
    • Update 2 (12:35PM ET): The full story is up. No potential deal price is given.
    | Aug. 20, 2015, 12:21 PM | 3 Comments
  • Jul. 20, 2015, 12:49 PM
    • Lockheed Martin (LMT +1.9%) hit a "trifecta" today following the announcement of its $9B purchase of Sikorsky Aircraft from United Technologies (UTX -0.7%), according to the analyst team at UBS.
    • The deal cements LMT's dominance in weapons making and opens key foreign markets for the company, which has annual revenues of $45B; analysts do not expect antitrust objections since LMT does not build helicopters.
    • LMT also announced a strategic review of a large portion of its government IT and services portfolio for a potential sale or spinoff.
    • Also, LMT's Q2 results came in well ahead of consensus, with 3% revenue growth well ahead of the UBS forecast for a 6% decline and 12% margins coming in 30 bps better than expected.
    • UTX shares also are worth buying, according to Sterne Agee CRT analyst Peter Arment, who says the Sikorsky sale is a "positive first step" in the transformation of its business portfolio and allows the company to return a large amount of cash to shareholders without reducing balance sheet flexibility; while Sikorsky generated ~10% of UTX sales, it only accounted for 6.5% of its profits.
    | Jul. 20, 2015, 12:49 PM | 4 Comments
  • Jul. 20, 2015, 1:42 AM
    • Lockheed Martin (NYSE:LMT) has agreed to buy United Technologies' (NYSE:UTX) Sikorsky Aircraft for over $8B, Reuters reports, cementing a deal that would give the Black Hawk helicopter to the maker of the F-35 fighter jet.
    • The acquisition of Sikorsky, which had more than 15K employees and net sales of $7.5B at the end of last year, would be the biggest by Lockheed since its $10B takeover of Martin Marietta two decades ago.
    • Pentagon officials said last week they would carefully evaluate any sale to maintain competition and avoid market distortions.
    | Jul. 20, 2015, 1:42 AM | 6 Comments
  • Jul. 8, 2015, 6:43 PM
    • Lockheed Martin (NYSE:LMT) and Textron (NYSE:TXT) have emerged as final contenders to buy United Technologies' (NYSE:UTX) Sikorsky Aircraft unit, which could be valued at ~$8B, Reuters reports.
    • UTX reportedly is weighing offers from the two companies and may come to a decision by the end of the month, but it still could decide against an outright sale and instead spin off Sikorsky to shareholders in a tax-free deal.
    • TXT, whose ~$12B market cap is only one fifth the size of LMT's $60B, is said to have reached out to P-E firms to put together a cash bid.
    • Boeing (NYSE:BA), which had expressed interest in a potential deal, is no longer active in the sale process, and Airbus (OTCPK:EADSF, OTCPK:EADSY) is not in the running, according to the report.
    • UTX +1.5% AH.
    | Jul. 8, 2015, 6:43 PM | 7 Comments