United Technologies Corporation Seeking For Global Acquisition Ranging $5 Billion

United Technologies Corporation Seeking For Global Acquisition Ranging $5 Billion

source by NYSE:UTX

On Wednesday, the chief executive officer of United Technologies Corporation said that the company is looking for acquisition over $5 billion internationally. It targets to consume its “trap cash” in the best available way, and prefers the acquisition to take place on buyback of shares.

Gregory Hayes, current president and CEO of the company appeared in the Barclays Industrial Select Conference the on Wednesday. He said, “At the moment we are looking for a larger scale merger and acquisition. When I quote large it means in the range of $5 billion plus.”

Mr. Hayes believes that growing globally is an appropriate approach for fetching excess cash and also to evade unfavorable taxation. He further said, “You would love to do merger and acquisition deal across the border to take benefit of all the stuck cash over there.”

The Connecticut based giant company is expected to buy back shares worth of $3 billion in the year 2015, until some good scenario appears. However, Mr. Hayes totally negates any possibility of larger buy back, as it will affect the company’s rating negatively. He further claimed, “To the extent how big you can do, I think we could go out and borrow a lot. “

Mr. Hayes took over united technologies President, director and chief executive officer position lately on 23rd November, 2014 before that he was company’s chief financial officer (CFO) and Senior Vice President (SVP).

During the last couple of years, United technologies have been very actively involved in M&A. during the year 2012; UTX acquired Goodrich Corporation, an aircraft component manufacturer for about $18.4 billion. In 2010 October, the Connecticut based company acquired Clipper Windpower for $591 million paid in two stages. Later in march 2012, it separated Clipper Windpower.

Throughout the last 3 months, the company has been a great performer as its share price has rose by 8%.however the S&P 500 has decreased by 50 basis points in the similar period.

Out of 25 analysts covering United Technologies stock, nineteen gave it a Buy rating, while six rated the stock as a Hold and the 12 month consensus target price is $127.82.

United Technologies Corporation (NYSE:UTX) stock price is $122.91 at market close on February 19th, with 30-days mean volume of 4.26 million shares. The Connecticut-based aerospace and building-systems technology giant has a 52-week low of $97.30, and a 52-week high of $123, with market cap of $109.99 billion and price to earnings ratio of 18.02.

 

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