United Technologies’ Rolls-Royce Takeover ‘Highly Unlikely’: RBC
2015-05-11 13:39:52.106 GMT
By Rachel Layne
(Bloomberg) -- Acquisition possibility by owner of Pratt &
Whitney jet engines of rival Rolls-Royce has barriers including
UK “golden share” rule, marine, energy and nuclear unit
disposition, “strong union” opposition and a new CEO,
Bernstein analyst Doug Harned (UTX outperform, RR/ LN market
perform) writes in note.
* Possibility has “provided support for Rolls’ share price";
‘‘realizing value will be difficult and would occur over a
long time period”
* Potential combination of technologies, lower cost
sourcing, “complimentary engine portfolios” and
“leverage of UTX operational capabilities”
* Potential combination of technologies, lower cost
sourcing, “complimentary engine portfolios” and
“leverage of UTX operational capabilities”</li></ul>
* Rolls-Royce +18% YTD, UTX +3% vs peer GE +8.3%
* NOTE: May 8, Rolls-Royce Mulls United Technologies as Short-
Haul Engines Ally
* NOTE: March 12, United Technologies Sikorsky Split Is
Prelude to Deals: Real M&A
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--With assistance from Julie Johnsson in Chicago.
To contact the reporter on this story:
Rachel Layne in Boston at +1-617-210-4634 or
rlayne@bloomberg.net
To contact the editor responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net
2015-05-11 13:39:52.106 GMT
By Rachel Layne
(Bloomberg) -- Acquisition possibility by owner of Pratt &
Whitney jet engines of rival Rolls-Royce has barriers including
UK “golden share” rule, marine, energy and nuclear unit
disposition, “strong union” opposition and a new CEO,
Bernstein analyst Doug Harned (UTX outperform, RR/ LN market
perform) writes in note.
* Possibility has “provided support for Rolls’ share price";
‘‘realizing value will be difficult and would occur over a
long time period”
* Potential combination of technologies, lower cost
sourcing, “complimentary engine portfolios” and
“leverage of UTX operational capabilities”
* Potential combination of technologies, lower cost
sourcing, “complimentary engine portfolios” and
“leverage of UTX operational capabilities”</li></ul>
* Rolls-Royce +18% YTD, UTX +3% vs peer GE +8.3%
* NOTE: May 8, Rolls-Royce Mulls United Technologies as Short-
Haul Engines Ally
* NOTE: March 12, United Technologies Sikorsky Split Is
Prelude to Deals: Real M&A
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
--With assistance from Julie Johnsson in Chicago.
To contact the reporter on this story:
Rachel Layne in Boston at +1-617-210-4634 or
rlayne@bloomberg.net
To contact the editor responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net