Honeywell Shareholders Resist Calls for Aerospace Spinoff, Chairman Says
- Cote: Component development ‘is a very long cycle business’
- Executive chairman doesn’t expect near-term U.S. recession
David Cote, Honeywell International Inc.'s executive chairman, comments on the calls by activist investor Third Point to spin off the company's aerospace unit. He speaks during an interview with Bloomberg Television Canada's Amanda Lang at the Conference of Montreal. (Source: Bloomberg)
Honeywell International Inc. shareholders are resisting calls by activist investor Third Point that the company spin off its aerospace unit, fearing they would lose out on the fruits of recent investments, Executive Chairman David Cote said.
The industrial giant’s development of aircraft broadband internet service for travelers and providing real-time data on component performance is hitting the market this year. The aerospace unit, which also makes cockpit controls and jet engines for private planes, has been a drag on earnings amid a weak market for helicopters and business jets, and as budget cuts hurt defense sales.