William Ackman’s Pershing Square Buys Stake in United Technologies
Summary
William Ackman’s Pershing Square Capital Management LP has taken a stake in United Technologies Corp. UTX -1.64% , putting another activist into a large conglomerate that is rethinking its structure. Mr. Ackman, one of the best-known activist investors, joins other agitators in the industrial sector, including Trian Fund Management LP in General Electric Co. and Third Point LLC in Honeywell International Inc. Analysts and investors have long speculated whether an activist was involved with United Technologies, a company that could be a prime target because of its distinct brands under a common corporate umbrella. Upon agreeing to buy Rockwell Collins Inc. for $23 billion in September, United Technologies was open to reviewing a breakup in the coming years after paring its debt and squeezing out cost savings, according to people familiar with the matter. Rival GE is currently struggling and considering its own breakup as lagging cash flow and mistimed spending have forced it to slash its dividend and financial targets.