Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, September 8, 2017

Article Excerpt

UNITED TECHNOLOGIES CORP., $109.55, New York symbol UTX, has four main businesses: Climate, Controls & Security makes heating/air conditioning systems and building alarms; Otis makes elevators; Aerospace Systems manufactures aircraft parts; and Pratt & Whitney develops and sells jet engines. The company announced this week a deal to acquire Rockwell Collins Inc. (New York symbol COL). That firm is a leading maker of aircraft components such as cabin interiors, computerized flight controls and air-to-ground communications equipment. Under the terms of the offer, Rockwell investors will receive $140.00 a share, consisting of $93.33 a share in cash (66.7% of the total) plus $46.67 worth of United Technologies’ shares (33.3%). In all, United Technologies will pay $30 billion. That includes Rockwell’s debt of $7 billion. To put those figures in context, United Technologies current market cap (the total value of all outstanding shares) is $86.3 billion. The combined company will have annual revenue of about $68 billion. It expects to cut its annual costs by $500…