Spinoffs could spur UTX

Article Excerpt

UNITED TECHNOLOGIES CORP. $125 (New York symbol UTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares o/s: 800.1 million; Market cap: $100.0 billion; Price-to-sales ratio: 1.7; Divd. yield: 2.2%; TSINetwork Rating: Above Average; www.utc.com) has four main businesses: Climate, Controls & Security makes Carrier heating and air-conditioning equipment, burglar alarms and fire-safety products; Pratt & Whitney manufactures jet engines; Aerospace Systems makes other aircraft parts; and Otis makes elevators and escalators. The company will now buy Rockwell Collins Inc. (New York symbol COL). It makes aircraft components such as cabin interiors and air-to-ground communications equipment. Under the terms of the offer, Rockwell investors will receive $140.00 a share, consisting of $93.33 in cash (66.7% of the total) and $46.67 worth of UTX shares (33.3%). Altogether, United Technologies will pay $30 billion. That includes Rockwell’s debt of $7 billion. The company expects to complete the deal in the third quarter of 2018. United Technologies has now attracted the attention of two well-known activist investors—Dan Loeb (Third…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.