Aircraft parts maker Honeywell International Inc said on Friday it had provided to buy United Technologies Corp for approximately US$90.7 billion.
Honeywell said its offer of US$108 per share comprised US$42.63 participate cash and 0.614 in the shares for every United Tech share.
The proposal represents a 22 percent premium to United Tech’s closing price on Feb. 19, the ultimate trading previous day the talks were created public.
The companies said the 2009 week that they held merger talks but didn’t provide any deal details during those times. United Tech said an offer would “face insurmountable regulatory obstacles.”
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A merger might be either blocked outright or conditioned on significant divestitures performing a lengthy and disruptive review period that will destroy shareholder value, United Tech said.
Honeywell, however, stated this hadn’t see regulatory process just like a “material obstacle” for that deal.
The company said on Friday an offer with United Tech would generate US$3.5 billion on price savings.
United Tech’s stock was up a few percent at US$100, while Honeywell’s was little changed at US$103.75 noisy . trading.
? Thomson Reuters 2016
