On October 20, the press reported that United Technologies Corporation (UTX) was
expected to announce an offer for Honeywell at an estimated $50-51 a share. Lehman
analyst Joseph Campbell found the “strategic fit … obvious and compelling” and noted
that the two firms had “highly complementary product lines” that would allow them to
exploit “powerful revenue and cost synergies.” Other observers noted that the deal would
give UTX a strong market position in most aspects of airplane manufacture other than the
airframe itself, including engines (UTX’s Pratt & Whitney unit) and electronic control,
communication, and navigation systems or “avionics” (Honeywell Aerospace).