Honeywell Says No Longer Pursuing Combination With United Tech - Quick Facts

(RTTNews) - Honeywell International Inc. (HON) said Tuesday that it is no longer pursuing a strategic combination with United Technologies (UTX) due to their unwillingness to engage in negotiations. Honeywell noted that it was interested in a combination because it saw compelling value creation for both sets of shareholders and a readily executable transaction due to two largely complementary business portfolios.

Honeywell said it strongly disagreed with United Technologies' characterization of the regulatory and customer risks associated with the transaction.

"From both an industrial logic and shareholder value perspective, Honeywell and United Technologies are a great match and that is why the two companies have been talking about a combination for more than 15 years," said Honeywell Chairman and CEO, Dave Cote. "We made a full and fair offer that would have greatly benefitted both sets of shareowners. Considerable value would have been added through the $3.5 billion of very achievable cost synergies (6% of UTX sales, 4% of total sales) and application of Honeywell management practices, especially our extensive software capability and cost management that would support needed product reinvestment.

Last week, United Technologies rejected Honeywell International Inc.'s purchase offer, saying it would be irresponsible for UTC to move forward with the proposed combination.