Purchase raises UTX’s clout

Article Excerpt

UNITED TECHNOLOGIES CORP. $123 (New York symbol UTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 801.0 million; Market cap: $98.5 billion; Price-to-sales ratio: 1.5; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.utc.com) has completed its acquisition of Rockwell Collins Inc. (New York symbol COL) now that Chinese regulators have approved the deal. United Technologies paid $30 billion in cash and stock for the leading maker of aircraft components such as cabin interiors, computerized flight controls and air-to-ground communications equipment. The purchase gives the company more clout with big aircraft makers. To secure approval in the U.S. and other countries for the takeover, it will sell some of Rockwell Collins’ smaller businesses. United Technologies now plans to spin off its Otis (elevators) and Carrier (heating and air conditioning) operations as two separate companies. The remaining firm will focus on Pratt & Whitney jet engines and other aerospace products. Investors are not be liable for capital gains taxes on their new shares until they sell…