“From time to time, it’s prudent for businesses to consider spinning off certain divisions or divesting assets as the business evolves.” -Shruti Gurudanti, Rose Law Group partner and leader of the firm’s space law practice
By Shivansh Tiwary | Reuters
Dec 16 (Reuters) – Honeywell (HON.O), opens new tab said on Monday it was considering a plan to separate its high-margin aerospace business, a move backed by activist investor Elliott Investment Management, which has been pushing for the company’s breakup.
The company, one of the last surviving U.S. conglomerates, has been on a deal-making spree this year under CEO Vimal Kapur, as it focuses on automation, aviation and energy businesses, while shedding segments that do not align with its plans.
Its shares have, however, underperformed this year, attracting the attention of Elliott, which has taken a more than $5 billion stake in the company and pushed for the separation of its aerospace and automation business.
Honeywell said on Monday its board had made “significant progress” on its review of strategic alternatives to date and the company would provide an update with its fourth-quarter results, usually scheduled in the last week of January. Shares were up 2% in early trade.
