United Technologies Says Rockwell Deal, Breakup Decision on Track
14 Setembro 2018 - 4:31PM
Dow Jones News
By Thomas Gryta
United Technologies Corp. Chief Executive Greg Hayes said that
he expects to close the $23 billion acquisition of Rockwell Collins
Inc. by the end of the month, and that in the meantime the
industrial conglomerate is forging ahead with plans for a possible
breakup.
The deal was announced a year ago and Mr. Hayes said in May that
he expected it to close in June or July, leading to speculation
that regulators were raising questions. Trade tensions with China
have also led to fear that the deal could become a negotiating chip
in the larger trade controversy.
"The regulatory process in China has gone as well as we could
have expected," Mr. Hayes said at a Morgan Stanley conference
Friday.
The delay was caused by the need to sell a business unit as part
of the deal, but it reached an agreement to sell those operations
to France's Safran SA earlier this month, he said.
Chinese regulators are waiting for the U.S. Department of
Justice to approve the deal, he said, which is expected soon. The
company has answered all questions from the various regulatory
agencies, he said.
Mr. Hayes said the review is going slower than expected but, in
a reversal, he noted that the company isn't waiting for the deal to
close to evaluate its portfolio.
"We haven't been waiting for the close to do the work," he said,
adding that the company is looking at various options for splitting
up.
The company has previously talked about a possible three-way
split with its aerospace business, including Rockwell Collins,
combining with jet engine maker Pratt & Whitney. The Otis
elevator business would be separate, as would its Climate, Controls
& Security division, which owns Carrier air conditioners.
Activist investor Bill Ackman's Pershing Square Capital
Management LP and Daniel Loeb's Third Point LLC have been pushing
the company to pursue a split.
A decision about the process is expected within 60 days, Mr.
Hayes said Friday, but hinted that investors prefer the company to
separate.
"It is not a surprise," he said. "Investors tend to value
focused companies."
Write to Thomas Gryta at thomas.gryta@wsj.com
(END) Dow Jones Newswires
September 14, 2018 15:16 ET (19:16 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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