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The
announcement arrives about one month after Elliott Investment
Management revealed a stake of more than $5 billion in the
aerospace, automation and materials company.
In a letter sent to Honeywell’s board, Elliott said that the
company needed to simplify its structure as it deals with uneven
execution, inconsistent financial results and an underperforming
stock price.
Elliott wants the the Charlotte, North Carolina, company to
separate its automation and aerospace businesses.
The board of Honeywell International Inc. has been exploring
strategic options for the company since earlier this year. It
has said there will be an update in late January when it
releases its fourth-quarter earnings results.
A number of American conglomerates, like General Electric and
Dow Chemical, have already broken up their companies to become
more nimble. Shares of Honeywell have trailed the S&P 500 index
by a wide margin this year.
The company, which makes everything from eye solution to barcode
readers, is already shifting. Since last December, Honeywell
announced plans to spin off its advanced materials business,
entered an agreement to sell its personal protective equipment
business, as its made several acquisitions.
"Honeywell is now well-positioned for significant
transformational alternatives, and we are continuing our deeper,
more granular exploration of their feasibility and possible
timing,” Chairman and CEO Vimal Kapur said in a statement.
“Honeywell’s board of directors remains committed to maximizing
shareholder value creation, and any decision will be evaluated
against that goal.”
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