NEW YORK (TheStreet) -- United Technologies stock is up 4.79% to $98.09 in afternoon trading Thursday, following comments by Honeywell (HON) legal adviser Christine Varney that a merger between by two companies could be completed.
Technology and aerospace company Honeywell confirmed earlier this week that it has held takeover discussions with United Technologies about a merger that would create an industrial giant with about $94 billion in sales.
United Technologies CEO Gregory Hayes told TheStreet's Jim Cramer in an interview on CNBC's Squawk on the Street Tuesday that a deal with Honeywell "ain't gonna happen" due to regulatory obstacles, but Honeywell has nonetheless continued to pressure the company to engage in merger talks.
"The stock's cheap and the combination with Honeywell would be amazing, but UTX CEO Greg Hayes told me it isn't going to happen. I have to believe therefore it wont!" Cramer said this afternoon.
Still, Varney explained to Squawk on the Street co-anchor David Faber this morning that she is "100% positive this deal is doable," according to CNBC. She claimed that there is no more than $5 billion of overlap between the companies, which can be divested.
When asked about customers' concerns, she pointed out that the $3.5 billion in synergies after divestitures will benefit all of the customers, CNBC adds.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
United Technologies' strengths such as its compelling growth in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures are countered by weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and feeble growth in the company's earnings per share.
You can view the full analysis from the report here: UTX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.