great group of companies at UTX. Kind of reminds me of Si. Tough to guess what they are looking for. Easier to know they aren't looking for...a lot of debt; big pension liabilities or anything in the medical; O&G or semicoductor fields.
How about WGOV? A large portion of the business fits nicely with the small gas and large gas turbine business. 1.2B total company sales 6 - 9% ROS current. Potential efficiency gains by combining operations of 2 - 4%. Sell off parts of industrial business to cover some of the aquisition costs. Current Market Cap is 700M...can probably look at a 1.4 to 1.7B aquisition cost
"The Hartford, Conn.-based company has spent $15 billion for acquisitions since 2000, with $7 billion of that for its fire and security business of which Diebold would have been a part, Hayes said. The company has set aside $2 billion for acquisitions.
CEO Louis Chenevert resisted efforts by analysts to pin him down on details about possible acquisitions.
"Obviously, I'm hopeful in this environment that the right things come together and it creates a stronger, better UTC and some of the franchises that we have, it's going to be within the core, within the businesses that we have," he said."
There are some CPST pimps suggesting that UTC would pay 14X market price for a company that doesn't make a profit, in fact loses almost $1. for every $1. of revenue. Beware of pimps.
CPST would be less than 1/10 of 1.% of UTC revenues, hardly on the radar screen.
I would tend to agree on the different scope of industries that PLL would enhance UTX. However, i would contend the cost would not meet to $1 to $2 billion threshold. 117m x $32(using a premium on todays value) $3.7 billion.Plus PLL value is 2.6 billion w/o a premium. The numbers dont fit the equation.
I have also heard someone make the case for UTX buying PLL. Seems strange, but if you look at what both companies do, there aren't redundancies as much as activities that benefit both companies.
UTX would not buY TXT.The industry is in same industry that UTX is cutting jobs now.The price to buy TXT would be too costly.You must take into account TXT trading range and its combined value of it parts.
Alternately (and I've not looked at book valuations on this company, so I may be badly wrong), UTC would let Carrier purchase this company as part of balancing Carrier's portfolio. The purchase would be an add-back to Carrier after Carrier's divestiture of other odds and ends in the last year or so.
This would leave the big bucks and the big horsepower for M&A back at the Gold Building, so that looking at something like Textron would be feasible.
Just a random thought.
Its obvious im dealing with someone that doesnt know anything to do with M&A. I was rounding up the number to get to 2 billion. The key is a maximum of 2 billion. TXT Enterprise value is 10.3 billion. Meaning the sum of its parts.Secondly, you must have not looked at the 52 week high or took in account that you are saying that you would take $20 for your UTX shares. If you want $20 is like saying TXT is willing to sell at less than 10 a share. You must be a bigger fool than i 1st imagined. I hope i dont have to come back here and TRY to explain any more M&A to you. KID is a good name for you because you are diffently thinking like one if you cant understand the MATH used in M&A.
>I guess im going to have to teach class again. UTX cant buy TXT for under 2 billion. Lets do the MATH. 242 shares outstanding x 8.20 = 2 billion.<
You're entitled to your own opinion, but, not your own facts. TXT market value is $1.35B. Additionally, 242 shares X your fictitious $8.20= $1,984. As for your math lessons, thanks, but, no thanks.
I guess im going to have to teach class again. UTX cant buy TXT for under 2 billion. Lets do the MATH. 242 shares outstanding x 8.20 = 2 billion. TXT 52 week high is 65. TXT shareholders will not allow a $8.20 share price if the 52 week high was 65.Would you take a buyout at $20 for your UTX shares? This is what your asking TXT shareholders to do. Use you common sense please. UTX wants to buy someone with 1 to 2 billion which fits into their core business. Their NEW CORE BUSINESS is Energy Efficiency per Obama stimulus and Carrier contract for $5 billion which uses CPST turbine for its PureComfort system. I hope this solves the MATH for you.