Honeywell International Inc offered more than US$90 billion to acquire United Technologies Corp (UTC) it said, revealing for the first time to company shareholders the details of a proposed deal to combine the industrial conglomerates.
Honeywell might need the support of investors if United Technologies continues to turn away its approaches to create a mammoth, single company.
United Technologies chief executive officer Gregory Hayes on Friday responded by sending a letter to shareholders, telling them that the proposal “grossly undervalues” the company and is not “an attractive deal.”
United Technologies rejected Honeywell’s offer, saying that a tie-up would face tough regulatory obstacles due to anti-trust issues.
Both of the companies are big players in the aerospace sector.
“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,” Hayes said.
United Technologies also released slides listing other deals blocked by regulators and detailing questions raised by customers, including Boeing Co and Airbus Group SE.
Honeywell last week dismissed those concerns.
Honeywell on Friday said that it offered to pay US$108 in a mix of cash and stock for each United Technologies share last week. It was the first time Honeywell publicly confirmed what it offered to pay for UTC, which is based in Farmington, Connecticut.
Honeywell is based in Morris Plains, New Jersey.
United Technologies shareholders would receive US$42.63 for each share they own. The combined company would have US$97 billion in annual sales.
Honeywell chief executive officer David Cote would run the combined company, according to the proposal.
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