Honeywell Shares Rally After Third Point Takes Stake

By Wallace WitkowskiMarketsMarketWatch Pulse

Honeywell International Inc. shares rallied in the extended session Thursday after activist investor Daniel Loeb's Third Point LLC said it took a stake in the company and urged it to spin off its aerospace business. Honeywell shares surged 4.4% to $135.65 after hours. In an investor letter, Third Point said Honeywell spinning off the aerospace business could result in an increase of $20 billion in shareholder value. "Spinning off Aerospace would transform Honeywell into an industrial growth company with a focus on automation and productivity," Third Point said in the letter. In a statement, Honeywell said it and its board would would "take the time necessary to ensure a comprehensive, informed and objective review of the potential separation of the Aerospace business."

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