Elliott's Largest-Ever $5 Billion Stake in Honeywell Pushes for Breakup; Shares Surge 9%

Nov 12, 2024, 02:15 PM

Elliott Investment Management has amassed a stake exceeding $5 billion in Honeywell International Inc., marking its largest investment ever in a single company. The activist hedge fund is urging the $164 billion industrial conglomerate to consider splitting into two standalone entities: one focusing on aerospace and the other on automation. Elliott predicts that such a breakup could increase Honeywell's share price by 51% to 75% over the next two years. Following reports of Elliott's stake and proposed restructuring, Honeywell's shares surged up to 9.2% in pre-market trading, reaching record territory. The hedge fund notes that Honeywell's stock has lagged behind its peers over the past five years and believes that a separation would unlock significant shareholder value.