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Elliott Management Pushes for Honeywell Breakup
Activist investor Elliott Management pushes for Honeywell breakup, citing potential for significant share price gains. Honeywell's CEO has already initiated portfolio changes, but Elliott believes more drastic measures are needed.
English
United States
Us PoliticsStock MarketFinanceMergers And AcquisitionsInvestingCorporate Restructuring
Honeywell International Inc.Elliott ManagementGeneral ElectricCnbc Investing ClubCarrier Global
Vimal KapurJim CramerLarry Culp
- Why is Elliott Management pushing for a restructuring of Honeywell?
- Elliott Management, an activist hedge fund, disclosed a more than \$5 billion stake in Honeywell, advocating for a breakup of the company into separate aerospace and automation businesses.
- What is the potential outcome of Elliott's proposed plan for Honeywell?
- The proposed separation aims to unlock Honeywell's full potential, with Elliott predicting a 51-75% share price upside within two years. This follows a period of sluggish organic revenue growth and underperformance compared to peers.
- How did the market react to the news of Elliott Management's stake in Honeywell?
- The news caused Honeywell's stock to surge to an all-time intraday high, reflecting investor enthusiasm for the potential restructuring and the precedent set by General Electric's successful breakup.
- What steps has Honeywell's CEO already taken to reshape the company's portfolio?
- Honeywell's CEO, Vimal Kapur, has already undertaken some portfolio reshaping, including acquisitions and spin-offs. However, Elliott believes more aggressive action is needed.
- What is Jim Cramer's perspective on Honeywell's situation and Elliott's involvement?
- Jim Cramer, of the CNBC Investing Club, supports Elliott's view, having previously advocated for Honeywell to streamline its operations. He believes Honeywell's assets, particularly in aerospace, are undervalued.