Honeywell Spikes as It's Said to Near Reveal of Spinoff Plans

Honeywell International Inc. spiked after reports that the industrial giant will announce the results of its portfolio review as soon as this week.

Shares climbed as much as 1.7 percent to $146 in pre-market trading, extending a rally that’s pushed them up by about 25 percent this year. The stock was little-changed as of 11 a.m. in New York.

Honeywell’s turbo technologies unit, which manufactures turbochargers for automobiles and trucks, is expected to be among assets that the company plans to spinoff, according to a person familiar with the matter, who asked not to be identified because the details aren’t public.

The Morris Plains, New Jersey-based company will keep its aerospace division, Reuters first reported Sunday, defying claims by activist investor Third Point that splitting off the division would add $20 billion in shareholder value and allow Honeywell to focus on its core businesses. It will form at least two new public companies as part of the review, according to the Reuters report.

A representative of Honeywell, which has a market value of about $109 billion, declined to comment.

Honeywell Chief Executive Officer Darius Adamcyk, who took over the role this year, said in May that “we do have an opportunity to simplify our portfolio.” The company said at the time that it was engaging advisers and “modeling various scenarios” after Third Point’s recommendation, with an assessment expected to be completed by fall.

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