China may hold up Rockwell deal

Article Excerpt

UNITED TECHNOLOGIES CORP. $122 (New York symbol UTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 800.1 million; Market cap: $97.6 billion; Price-to-sales ratio: 1.6; Dividend yield: 2.3%; TSINetwork Rating: Above Average; www.utc.com) has won approval from U.S. regulators for its acquisition of 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. To secure that approval, United Technologies has agreed to sell two of Rockwell Collins’ smaller businesses. United Technologies has some operations in China, so Chinese regulators must also approve the takeover. It’s possible they will delay a final decision in response to U.S. tariffs on imports from that country. Even if the company has to sell some businesses in China, the Rockwell purchase will give it more clout with big aircraft makers. United Technologies is still a buy. buy…

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