Honeywell

(HON) - Get Report

is in talks to purchase U.K. industrial holding Novar for $1.52 billion, according to reports.

The Wall Street Journal

writes that Novar's board has approved the deal, in which Honeywell will acquire all shares of its target for $3.56 per share. The

Financial Times

gives the bid as $3.54 to $3.64 per share. These prices represent a 28% premium over a hostile cash-and-stock bid made a month ago by London-based holding company Melrose.

After rejecting the Melrose bid, Novar searched for a new acquirer, according to the

Journal

, and even considered breaking itself up. The

Journal

reports that sources close to the story say white-knight Honeywell may selloff units outside its main interest: Novar's building-security and fire-systems-and-services business.

Shares of Morristown, N.J.-based manufacturer Honeywell closed higher by 74 cents, or 2.14%, on Friday, at $35.31.