Aircraft parts maker Honeywell International Inc said on Friday it had offered to buy United Technologies Corp for about US$90.7 billion.
Honeywell said its offer of US$108 per share comprised US$42.63 be part of cash and 0.614 of its shares for every United Tech share.
The proposal represents a 22 percent premium to United Tech’s closing price on Feb. 19, the last trading previous day the talks were made public.
The companies said the 2009 week that they held merger talks but didn’t provide any deal details at the time. United Tech had said a deal would “face insurmountable regulatory obstacles.”
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A merger could be either blocked outright or conditioned on significant divestitures after a lengthy and disruptive review period that will destroy shareholder value, United Tech said.
Honeywell, however, said hello did not see regulatory process as a “material obstacle” to the deal.
The company said on Friday an offer with United Tech would generate US$3.5 billion in cost savings.
United Tech’s stock was up about 2 per cent at US$100, while Honeywell’s was little changed at US$103.75 at the begining of trading.
