United Tech To Repurchase $2.65 Bln Of Stock Under Accelerated Plan

(RTTNews) - United Technologies Corp. (UTX) disclosed in a regulatory filing that it entered into accelerated share repurchase or "ASR" agreements with each of Goldman, Sachs & Co. and Morgan Stanley & Co. LLC to repurchase an aggregate of $2.65 billion of the Company's common stock.

The ASR is part of the Company's previously announced share repurchase target of $3 billion for 2015 and within the remaining number of shares authorized under the Board of Directors' previously announced authorization for the purchase of up to 60 million shares of Company common stock.

As per the terms of the ASR agreements, the Company will make a $1.325 billion payment to each of Goldman Sachs and Morgan Stanley on March 13, 2015 and will receive from each of them on the same day an initial delivery of 9,289,426 shares of the Company's common stock.

The final number of shares to be repurchased will be based on the average of the daily volume-weighted average prices of the Company's common stock during the term of the ASR transaction, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR agreements.

At settlement, under certain circumstances, each of Goldman Sachs and Morgan Stanley may be required to deliver additional shares of common stock to the Company, or, under certain circumstances, the Company may be required to deliver shares of common stock or to make a cash payment, at the Company's election, to Goldman Sachs and Morgan Stanley.

The final settlement of the transactions under the ASR agreements is expected to occur no later than the fourth quarter of 2015 and may be accelerated at the option of Goldman Sachs or Morgan Stanley, as the case may be.