(Reuters) -Honeywell Worldwide mentioned on Monday its board is contemplating a possible separation of the aerospace enterprise because it continues to assessment its enterprise portfolio, sending the conglomerate’s shares up almost 3% in premarket buying and selling.
Since taking cost final yr, Honeywell (NASDAQ:)’s prime boss Vimal Kapur has appeared to align the corporate’s portfolio with the so-called megatrends of automation, aviation and vitality transition.
The board has made important progress so far and the corporate plans to supply an replace when it studies its fourth-quarter outcomes, it mentioned on Monday.
The assessment comes after activist investor activist Elliott Funding Administration known as for a cut up of Honeywell’s aerospace and automation companies after taking a greater than $5 billion stake within the firm in November.
“We consider the portfolio transformation Vimal and his crew are main represents the appropriate course for Honeywell,” Elliott mentioned in an announcement on Monday.
Honeywell had additionally disclosed in November that it could promote its private protecting gear enterprise to Protecting Industrial Merchandise for about $1.33 billion in money.
The conglomerate has additionally purchased Service’s safety enterprise for $4.95 billion and bought aerospace and protection agency CAES Techniques for $1.9 billion as a part of its wider shift.