HONEYWELL reports it has officially dropped merger talks with UTC.
“I can say that at $US108 (per share), this…was an incredible deal,” Honeywell CEO David Cote told CNBC’s Jim Cramer. “There was a lot of value there already, but if they don’t want to do it, they don’t want to do it.”
Cote said Honeywell made UTC “a full and fair offer” that would benefit both sides, but he later lamented that “continuing to try to negotiate with an unwilling partner is inconsistent with our disciplined acquisition process.”
Cote said he did not try to force a deal with UTC.
“I was pretty clear from the beginning with investors that I’m not going to do that,” he said. “We’ve got plenty of other opportunities."
Highlighting such opportunities, Honeywell has just bought Videofied manufacturer RSI Technologies for $US123 million.
UTC's official statement said:
“This is the appropriate outcome given the strong regulatory obstacles, negative customer reaction and the potential for a protracted review process that would have destroyed shareholder value.” ♦