BOSTON (Reuters) – Billionaire investor Daniel Loeb said on Friday that his hedge fund Third Point LLC will vote against the planned merger of United Technologies Corp and Raytheon Co , saying there is no “strategic rationale for this transaction.”
On June 10, the industrial conglomerate and military contractor announced a $120 billion merger, a deal that would intensify the pace of consolidation in the aerospace and defense industry and is expected to be completed in the first half of next year.
Letter - Loeb - United - Technologies - Management
In his letter, Loeb criticized United Technologies management for turning its back on previous plans to break the company into three businesses – aerospace, Otis elevators and Carrier air conditioners – and accused United Technologies Chief Executive Greg Hayes of engineering the merger to secure his employment.
United Technologies said it does not agree with Loeb’s conclusions, adding that its board remains confident that the merger will create a premier systems provider. Other shareholders “agree with us as to the desirability of the merger,” the company said.
Loeb - Supporter - United - Technologies - Plan
Loeb, a forceful supporter of United Technologies’ plan to...
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