utc touts $23 billion deal as stock drops, boeing turns critic - carrier air conditioner parts

by:HICOOL     2021-10-11
utc touts $23 billion deal as stock drops, boeing turns critic  -  carrier air conditioner parts
NEW YORK (Reuters)-
On Tuesday, investors and Boeing offered a $23 billion acquisition plan for aerospace and industrial co-tech.
The acquisition, which will be announced on Monday, will be the largest acquisition in aerospace history and create a new player among top suppliers of Boeing, Airbus, Bombardier and other aircraft manufacturers.
Shares of United Technology fell 5.
Boeing 2% said it would use the power given by contracts with these companies and the influence with regulators to "protect our interests ".
"The stock had fallen more than 4% before Boeing issued a statement, as analysts considered the decision of the joint technology company to stop the stock repurchase for three to four years, and the dilution of income caused by cash --and-stock deal.
Analysts expect to buy back $2 billion in the second half of 2017 alone.
Years of buyback losses and Boeing's unusual counter-attack were due to the pressure from aircraft manufacturers on joint technology companies and other suppliers to cut prices and try to compete with them at high prices
Margin service and spare parts.
Analysts say that by making more components used on Boeing and Airbus SE aircraft, joint technology-
Rockwell Collins will gain leverage against this pressure.
Greg Hayes, co-chief executive of the merged company, ignored Boeing's concerns.
"The whole idea of this deal is to be able to drive more innovative solutions for our customers at a lower cost --both the (plane makers)
Prior to Boeing's criticism, Hayes told Reuters on Tuesday.
Rockwell's skills in software, combined with the expertise of joint technology in many aircraft components, allow the company to deliver the new "digital" products the airline wants, he said.
Speaking of the data, Hayes said: "We will be able to do predictive analysis that many others can't do, which is how you add value to airline customers --"
This enables the airline to detect problems before the engine and other components fail.
Hayes said he has assured Airbus CEO Tom Enders that the Pratt & Whitney division of United Technologies will continue to deliver 350 to 400 jet engines this year.
United Tech is lagging behind in engine delivery this year due to production issues, and Airbus raised concerns about the deal last week, distracting United Tech.
"Pratt has nothing to do with it," Hayes said . " He noted that the aviation division of United Technologies, Not Pratt, will work with Rockwell Collins to create Collins airlines.
Hayes also dismissed speculation that the acquisition would prompt the joint technology company to strip its operator's air conditioning or Otis elevator equipment, saying the company needed their cash flow to help repay the debt in the transaction.
But in the long run, Hayes does not rule out such sales.
"After the transaction is completed, after we have repaid some of our debts, we will go back and have a look," he said . ".
If the company's share price does not reflect its value, "We need to do something, he said.
United technology can sell "non
At the same time, Hayes said, the core part "such as family safety.
But given the tax and revenue losses, he said, "it's hard to understand financially unless these transactions get a high price ".
Rockwell shares rose 0.
$ 3% to $131.
Afternoon trading 00.
Part of the Dow Jones industrial average fell 5.
$ 2% to $111. 82.
Jeff schplatg, an analyst at Vertical Research Partners, said in a report: "We believe that as stock buybacks are withdrawn, trading timing becomes the focus of investors' attention and short-term gains are limited.
United Tech's combination of engines and systems has little overlap with Rockwell's avionics, seating, and in-house operations, and Hayes says this should mean no trouble during the necessary regulatory review
If successful, the combination will mark the rise of the second engine. to-
Rear seat suppliers
$7 pending for engine manufacturer Safran SA. 7-
The deal to buy seat maker Zodiac Aerospace reached one billion.
Safran said Tuesday it will look at assets that could be sold after United TechnologyRockwell deal.
United technology is expected to borrow $15 billion and will take on $7 billion in Rockwell debt to fund the deal, which is expected to end in 2018.
United Technology said the acquisition will increase revenue in the first full year and generate at least $0. 5 billion in cost savings in the fourth year of operation.
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