United Tech rejects Honeywell's $90.7 billion offer
By Ankit Ajmera and Andrea Shalal
(Reuters) - U.S. industrial conglomerate United Technologies on Friday rejected a $90.7 billion offer by rival aerospace supplier Honeywell International Inc, 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 U.S. 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 Corp (UTX.N: Quote) 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.
United Tech's filing came hours after Honeywell (HON.N: Quote) spelled out the details of its $90.7 billion offer to acquire United Tech, putting pressure on the reluctant aerospace supplier to come to the negotiating table.
Honeywell Chief Executive Officer David Cote, in a presentation he made to United Tech's top executives last week and then made public on Friday, said a combined company would have double-digit earnings growth after it slashed costs. Continued...