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Honeywell Breakup Would Set the Stage for a Tidy 25% Gain
- Analysts’ sum-of-the parts math pegged at $260 to $280 a share
- Aerospace spin would put unit in focus, pave way for deals
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Honeywell International Inc. executives may have needed nearly eight years and two activists to decide on a breakup, but the wait may be worth it for shareholders, who stand to reap a return of as much as 25% from the move.
The roughly $145 billion industrial conglomerate is poised to split into two businesses focused on aerospace and automation, Bloomberg reported this week. The breakup would follow a pressure push from Elliott Investment Management that echoes a similar campaign in 2017 by Dan Loeb’s Third Point LLC.