United Technologies Reportedly Talking To Possible Buyers For Sikorsky Unit

(RTTNews) - United Technologies Corp. (UTX) is talking to potential buyers for its Sikorsky Aircraft business, the Wall Street Journal reported citing people familiar with the matter said.

According to report, Boeing Co., Airbus Group NV and Lockheed Martin Corp. are among the companies exploring bids for Sikorsky or, alternatively, for a minority stake. Bids are due later this month.

Sikorsky is one of the world's largest helicopter makers with $7.5 billion in sales last year to a range of military and civilian buyers. The company could fetch around $10 billion in a full sale, the report said.

One sticking point of a potential sale is the tax bill. The corporate predecessor to United Technologies bought Sikorsky in 1929, meaning the gain from a sale could garner a large tax bill. As a result, when United Technologies said it was exploring strategic alternatives for the unit earlier this year, it indicated a spinoff was the most likely outcome.