UTX Held Early Deal Talks With Honeywell, But Didn't Proceed Further

(RTTNews) - Responding media reports, United Technologies Corp.(UTX) confirmed Monday that it has previously engaged in preliminary, exploratory conversations about a range of potential collaborative options with Honeywell (HON). But, United Technologies never explored these options further due to significant regulatory obstacles, customer concerns and valuation issues.

United Technologies noted that it has communicated to Honeywell that combining two of the world's largest players in the aerospace and commercial building segments would face insurmountable regulatory obstacles and strong customer opposition, and could either be blocked outright or conditioned on significant divestitures after a lengthy and disruptive review period that would destroy shareholder value.

United Technologies said it continue to believe that its global franchises have generated and will continue to generate significant cash flow through economic cycles, and its business segments are extremely well positioned to create long-term shareholder value.

HON closed Monday trading at $105.17 or down $2.10 or 1.96%. but, in the after-hours, the stock up $0.13 or 0.12%.

UTX closed Monday trading at $92.37, up $4.14 or 4.69%. In the after-hours, the stock further gained $0.03 or 0.03%.