United Tech in Takeover Talks With Rockwell Collins

By Dana Mattioli and Joann S. LublinFeaturesDow Jones Newswires

United Technologies Corp. has made an approach to acquire Rockwell Collins Inc., but the two aerospace suppliers are still wrangling over the price of a takeover that would exceed $20 billion, according to people familiar with the matter.

United Technologies recently made an initial offer of less than $140 a share, according to one person familiar with the matter. The two sides are still in discussions and it is unclear if they will result in an agreement, the people said.

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The timing of the discussions is unusual as they come just a few months after Rockwell Collins closed on its own acquisition -- a $6.4 billion purchase of B/E Aerospace. United Tech executives have recently said they are looking for potential acquisitions, but suggested they would focus on smaller transactions.

Rockwell Collins had a $19.4 billion market value as of Friday's close. The company's share price gained 3% to $122.71 in afternoon trading Monday, following earlier reports of the discussions. Shares of United Technologies slipped 2%.

A deal would increase United Technologies' role as a major supplier to Boeing Co. and Airbus SE as the industry boosts production for a new generation of jets. The company already owns one of the world's biggest jet engine makers, Pratt & Whitney, as well an aerospace division that makes parts such as wheels and landing gears.

Rockwell specializes in cockpit displays and communications systems for passenger jets and military programs. In April, the Cedar Rapids, Iowa, company closed its acquisition of B/E Aerospace, a big maker of plane seats and interiors. The deal added almost $3 billion in annual sales to a company with about $5.3 billion in revenue.

Thomas Gryta

contributed to this article

Write to Dana Mattioli at dana.mattioli@wsj.com and Joann S. Lublin at joann.lublin@wsj.com

(END) Dow Jones Newswires

August 07, 2017 12:56 ET (16:56 GMT)