NEW YORK (TheStreet) -- United Technologies stock is surging 6.84% to $94.20 in afternoon trading Monday on a possible merger with technology and aerospace company Honeywell (HON).

Honeywell stock is up 1.46% to $108.85 this afternoon.

Honeywell held takeover discussions within the past two weeks about a merger that would create an industrial giant with about $94 billion in sales, sources told CNBC.com.

The two companies talked about a deal in which Honeywell would offer largely stock and some cash for its smaller rival. 

Last year, United Technologies approached Honeywell about a possible merger of equals, but the talks fell apart after shares of United Technologies tumbled and the two companies failed to agree on which would control the combined company, CNBC.com 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. 

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