Honeywell Stock Rises as It Considers Aerospace Spinoff | Global News Avenue

Honeywell International (Medal of Honor) shares rose on Monday as the group gave an update on a portfolio review it began earlier this year, noting it was considering spin off its aerospace division.

Chief Executive Officer (CEO) Vimal Kapur said that since the company realigned its operations in January, “we have been working quickly and decisively to optimize Honeywell’s product portfolio to achieve superior growth and drive incremental shareholder value.” Kapur added Honeywell has also been “evaluating additional transformational changes,” the company said.

Kapoor explained that following the “portfolio enhancements” launched earlier this year, “Honeywell is now ready for significant transformation alternatives and we are continuing to conduct research on their feasibility and possible timing.” A deeper, more detailed exploration.”

The company noted that further updates on these actions will be released in its fourth-quarter earnings report.

Elliott ‘welcomes’ Honeywell announcement

activist investorElliott Investment Management responded to the statement, writing that it welcomed Honeywell’s announcement of an ongoing review of strategic alternatives “including the divestment of its aerospace business.” Last month, Elliott disclose It has acquired more than $5 billion worth of shares in Honeywell and has called for the company to be broken up.

Honeywell shares rose nearly 3% on Monday morning to hit a record high following the Elliott news last month. Their shares are up about 12% so far this year.