Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, June 14, 2019

Article Excerpt

UNITED TECHNOLOGIES CORP., $125.30, symbol UTX on New York, is an industrial conglomerate with three operating segments: Aerospace, including Rockwell Collins and Pratt & Whitney; Carrier air conditioning; and Otis elevators. United Technologies, which is in the midst of spinning off its Carrier and Otis segments into two independent, publicly traded companies, announced June 9, 2019, that it will merge with Raytheon Company (symbol RTN on New York). This is an all-stock deal that would be the biggest in aerospace and defence history at roughly $100 billion. Termed a merger of equals, Raytheon shareholders will receive 2.3348 shares in the combined aerospace company, which will be called Raytheon Technologies Corporation. United Technologies shareholders will own 57% of the company, with Raytheon shareholders holding the rest. The two companies expect to find $1 billion in annual cost savings by the fourth year following the merger. United Technologies CEO Greg Hayes will be CEO of the combined entity, while Raytheon CEO Tom Kennedy will become…