Honeywell Keeps Pressure on United Technologies

Honeywell sent a strong signal Friday that it has no plans to walk away from a proposed transaction with United Technologies Corp. (UTX).
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Honeywell International Inc. (HON) sent a strong signal Friday that it has no plans to walk away from a proposed transaction with United Technologies Corp. (UTX) releasing a 10 page document detailing its offer and outlining the benefits of a combination. Honeywell said it offered $42.63 a share in cash plus .614 shares for each share of United Technologies during a Feb. 19th meeting with United Technologies leaders. The offer valued United Technologies at $108 a share, a premium of 22% to the company's Feb. 18th share price. United Technologies officials, which according to reports initiated the talks with Honeywell last year, rejected the offer due to their belief that the $90 billion bid would not pass regulatory muster. Word of the offer leaked earlier this week, with United Technologies telling CNBC Tuesday that 'as much as the deal makes sense...There's just no way to get it done.' Honeywell obviously disagrees and on Friday talked up the advantages of combining two of the top suppliers to the aerospace and building industries. While Honeywell did not say what its plan of attack is going forward, the company appears to be hoping that its detailing of the offer will be enough to entice United Technologies shareholders to push their company to engage in additional talks.