Honeywell says it will not pursue 90B United Technologies deal

Eric Strauss//March 1, 2016//

Honeywell says it will not pursue 90B United Technologies deal

Eric Strauss//March 1, 2016//

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Honeywell announced Tuesday that it is giving up its pursuit of United Technologies, an aerospace-technology company that had recently rebuffed the Morris Plains conglomerate’s takeover advances.“From both an industrial logic and shareholder value perspective, Honeywell and United Technologies are a great match and that is why the two companies have been talking about a combination for more than 15 years,” Honeywell Chairman and CEO Dave Cote said in a prepared statement. “We made a full and fair offer that would have greatly benefited both sets of shareowners. …

“However, continuing to try to negotiate with an unwilling partner is inconsistent with our disciplined acquisition process.”

Last Friday, Morris Plains-based Honeywell released the details of its Feb. 19 offer for United Technologies, a $108-per-share cash and stock proposal that it valued at approximately $90.7 billion.

However, United Technologies turned down the offer, citing regulatory and customer risks.

Gregory Hayes, CEO and president of United Technologies, had countered the offer details Feb. 26 with his own statement:

“After consultation with our legal advisers, we concluded that a combination would be blocked outright or, even if it were possible to complete a transaction, the regulatory delay, required divestitures and customer concerns and concessions would ultimately destroy shareholder value far beyond any synergies.”

Honeywell did have other acquisition news Tuesday, however.

First, the company said it had completed its deal for privately held German cloud computing company Movilizer for an undisclosed amount.

Then, it said it has paid about $123 million to buy privately held French security systems company  RSI Video Technologies.