Honeywell drops bid for United Technologies

NEW YORK (AP) – Honeywell abandoned a bid worth more than $90 billion for rival United Technologies, saying it did not want to force a deal with an unwilling partner.

At some point the mood soured however, and Honeywell says United Technologies has since been unwilling to engage in negotiations.

A representative from United Technologies wasn’t immediately available for comment.

Honeywell strongly disagrees with United Technologies Corporation’s (NYSE:UTX) arguments pertaining to the regulatory and customer-related issues linked to the agreement.

In fact, we were told by them during the meeting that such a combination would be fabulous, they would take it very seriously and they would get back to us with questions within a week in anticipation of their upcoming Board meeting.

The Morris Plains, N.J.-based manufacturer said that both firms have agreed in the recent past that “the industrial logic was compelling in a very doable transaction”.

United Tech rejected Honeywell’s offer last week, saying a merger would either be blocked outright or any synergies would be far outweighed by regulatory delays, required divestitures and customer concerns.

“We remain confident that the regulatory process would not have presented a material obstacle to a transaction”, Honeywell said in a news release.

Both companies concede they have held talks over the possibility of a merger for several years, and, according to Honeywell, UTC initiated talks in May 2011 and April 2015.

“We made a full and fair offer that would have greatly benefited both sets of shareowners”, Honeywell Chief Executive Officer David Cote said in the statement.

Shares of United Tech, the maker of Otis elevators, Carrier air conditioners and Pratt & Whitney jet engines, were down 3.5 percent in early trading on Tuesday, while Honeywell was up 2.7 percent. Shares of United Technologies were down 2.4%.