UTC-GE rumors heat up again
It's all still coming from unnamed sources, and there are conflicting reports, but it's hard to deny that there seems to be something going on with UTC and GE Security. First, there's today's article on www.thestreet.com, which quotes the Financial Times, a link for which I can't find, possibly because it's behind a pay wall:
General Electric (GE Quote) is in advanced talks to sell its security systems unit to United Technologies(UTX Quote) for more than $1.5 billion, the Financial Times reports."more than $1.5 billion" - GE must hope so. That would seem to be a discount. Then again, the numbers in this paragraph don't make sense to me either:
The Financial Times says United Technologies could expect to add more than $6 billion in annual sales from GE's security division.$6 billion? GE Security was only projecting about $2 billion for this past year, and I don't think they're expecting 200 percent growth. That's got to be a typo or something, right? Anyway, Bloomberg is also reporting on the possible deal, and they've been the ones who've led the reporting all along, really. This time, after having said a couple weeks back that UTC is "leading the bidding," Bloomberg now says, "United Technologies Corp. is nearing an agreement to buy General Electric Co.â€™s fire alarm and security systems unit for at least $1.8 billion." Hey, that's more than $1.5 billion, right? But Bloomberg has other juicy specifics, too: "The purchase may be announced as early as Nov. 12, said the people, who declined to be identified because the agreement isnâ€™t public." Yikes! That's tomorrow. I was kind of hoping to screw around and do nothing today (actually, I've got to move my office to another part of the office). This means I should probably call some people... Also, this is interesting from the Bloomberg article. It's UTC Louis Chenevert talking:
â€œWe are a willing buyerâ€ in fire and securities businesses, Chenevert said during a Webcast of a presentation at the Goldman Sachs Global Industrial Conference. Thatâ€™s because the market in the area is about $100 billion and â€œwe are $6 billion players and thereâ€™s a lot of room to grow.â€Is that where the $6 billion number from the Street article came from? Must be, right? I'm guessing Chenevert doesn't think GE Security would immediately double their entire business. Maybe he does, though. Also, please note that I'm reporting that Reuters is reporting that Bloomberg is reporting that UTC will soon by GE Security. Boy do I love the Internet.