United Technologies, Honeywell Talks End
S T A M F O RD , Conn., Oct. 20 -- United Technologies called offtakeover talks with Honeywell International,abandoning a potential $40 billion deal that would have created anindustrial powerhouse making everything from jet engines to homesecurity systems.
In a statement, United Technologies said Honeywell told it thatit was considering an alternative merger proposal received in themorning.
Separately, Honeywell confirmed it had received anotherproposal and that United Technologies had halted talks, but gave noother details.
Rumored Suitors Include Tyco
It wasn’t immediately clear which company had made an offer forHoneywell, though analysts have identified Tyco International Ltd., General Electric Co. and Germany’s Siemens AG as possible suitors. All three companies have strong electronic andmanufacturing businesses.
Judith Czelusnik, senior vice president of corporate relationsfor Tyco International, declined to comment on what she called“rumor and speculation.”
Both the Wall Street Journal and CNBC reported late today that GE had made a formal bid for Honeywell, citingsources familiar with negotiations. The Journal said thatHoneywell’s board would be meeting Saturday evening to discuss theoffer, also valued at about $40 billion.
The deal considered earlier by United Technologies and Honeywell was reportedly worth about $40 billion. The companies confirmed their merger discussions in a statementThursday evening but gave no details.
Both companies are among the 30 stocks in the Dow Jonesindustrial average.
Potential Combination Lauded
Honeywell was created last December, when Minneapolis-basedHoneywell was acquired by AlliedSignal, which is now based inMorristown, N.J. The company, which set up headquarters inMorristown, has about 120,000 employees worldwide and earned $1.54billion on revenue of $23.74 billion in 1999.
United Technologies makes Pratt & Whitney jet engines, Carrierair conditioners, Otis elevators and Sikorsky helicopters. Thecompany, which has 148,300 employees worldwide, earned $1.53billion on revenue of $23.84 billion in 1999.
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