NEW YORK (TheStreet) -- United Technologies stock is retreating 0.63% to $97.45 in late-afternoon trading on Friday after rejecting Honeywell's (HON) acquisition offer, claiming that it "grossly undervalues" the company and overstates possible synergies.

Earlier today, Honeywell released the terms of its offer to purchase its rival aerospace company. Honeywell proposed a cash and stock deal of $108 per share for United Technologies.

Under the terms of the transaction, United Technologies shareholders would receive $42.63 in cash as well as 0.614 Honeywell shares, reports. United Technologies shareholders would own 40% of the combined company. 

Honeywell projected $3.5 billion in synergies and $10 billion in free cash flow. 

"Putting aside the insurmountable regulatory risks, the proposal is not an attractive deal for UTC's shareholders and does not reflect UTC's strong long term outlook," United Technologies CEO Greg Hayes wrote in a statement.

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.

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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.

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