United Tech in Takeover Talks With Rockwell Collins
August 07 2017 - 1:11PM
Dow Jones News
By Dana Mattioli and Joann S. Lublin
United Technologies Corp. has made an approach to acquire
Rockwell Collins Inc., but the two aerospace suppliers are still
wrangling over the price of a takeover that would exceed $20
billion, according to people familiar with the matter.
United Technologies recently made an initial offer of less than
$140 a share, according to one person familiar with the matter. The
two sides are still in discussions and it is unclear if they will
result in an agreement, the people said.
The timing of the discussions is unusual as they come just a few
months after Rockwell Collins closed on its own acquisition -- a
$6.4 billion purchase of B/E Aerospace. United Tech executives have
recently said they are looking for potential acquisitions, but
suggested they would focus on smaller transactions.
Rockwell Collins had a $19.4 billion market value as of Friday's
close. The company's share price gained 3% to $122.71 in afternoon
trading Monday, following earlier reports of the discussions.
Shares of United Technologies slipped 2%.
A deal would increase United Technologies' role as a major
supplier to Boeing Co. and Airbus SE as the industry boosts
production for a new generation of jets. The company already owns
one of the world's biggest jet engine makers, Pratt & Whitney,
as well an aerospace division that makes parts such as wheels and
landing gears.
Rockwell specializes in cockpit displays and communications
systems for passenger jets and military programs. In April, the
Cedar Rapids, Iowa, company closed its acquisition of B/E
Aerospace, a big maker of plane seats and interiors. The deal added
almost $3 billion in annual sales to a company with about $5.3
billion in revenue.
Thomas Gryta
contributed to this article
Write to Dana Mattioli at dana.mattioli@wsj.com and Joann S.
Lublin at joann.lublin@wsj.com
(END) Dow Jones Newswires
August 07, 2017 12:56 ET (16:56 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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