Aerospace Spinoff

Here you go, as just published (NYT) - it'll be fun to watch this develop and the spinoff go south (or north)...

Dan Loeb Takes Aim at Honeywell, Calls for Aerospace Spinoff

Source: https://www.nytimes.com/2017/04/27/business/dealbook/movers-earnings-stocks-amazon-google-alphabet-microsoft-ford-lloyds.html

The Honeywell InturVue weather radar. Credit Alan Diaz/Associated Press

Third Point, the $16 billion activist hedge fund run by Dan Loeb, has taken aim at the technology and manufacturing company Honeywell International. In a letter just issued to investors, Third Point urges Honeywell to spin off its aerospace unit.

Such a spinoff, Third Point argues, would result in a “sustained increase in shareholder value” of more than $20 billion and would prevent Honeywell from trading at a “substantial discount” to its peer group of companies, as it does now.

In the letter, Third Point, which held about 1.4 million shares of Honeywell according to its last regulatory filing, indicates that several Wall Street analysts who do research on the company share its view of the value of an aerospace spinoff. It did not name the analysts. — KATE KELLY

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9 replies (most recent on top)

Third Point is just playing a very large "pump and dump" game. The SEC should be notified and they should be fined double the amount they make from these shenanigans.

There's blood in the water, the sharks are circling, these guys are looking to make a quick buck, look at their history ( wiki and elsewhere ), they made 1$B in greenmail from yahoo. For sure They will not invest in new priduct development, the very least damaging thing they will do is sell off pieces of aero.....sell your stock today.

I say good luck to you all in aerospace from PMT side we all not liking this HOS BS and metrics crap we all want do our jobs best we can but this HOS crap is tieing us down for last 10 years let's us be already and we will make $$$$$ for you greedy ceo

Regarding the stock - buyouts, spinoffs, stock splits are late stage activities. These come when all other means to keep stock going have been expended.

If there is a sale, it all depends on who buys to know if it will be good or bad. You won't know until it's over. But since Aero is a very mature space, likely it will be a way to reduce more. I don't think someone would be buying Aero because the future growth looks so good. More likely a combine and slash. I not sure anyone would really be interested in buying Aero. Third Point is just trying to make money, but low sell high. Talk a big story to get stock up. Usually when there is a storyline this, the story teller is doing it so they can keep stock propped up as they try to get out.

Those at Areo that still have jobs won't if and when this spin-off takes place. Like any other major sale of a company or a division of a company , there are always job cuts. Leave soon if you can.

We honestly don't know. Honeywell is assessing the possibility which is code for - we are looking for a a way to divest legacy aero. I don't even know what is legacy aero.

So, I'm fairly new to Honeywell and in the Space segment. What does this mean to ME? Are they going to sell off to a competitor and then lay us off? Have no idea what this means.

https://nyti.ms/2qbHEyr

Thread regarding Honeywell International Inc. layoffs

Aerospace Spinoff

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