United Technologies Corp. had rejected the offer, saying a tie-up of the two industrial conglomerates would never be approved by anti-trust regulators.
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“We remain confident that the regulatory process would not have presented a material obstacle to a transaction”, Honeywell said in a news release.
Honeywell on Tuesday said that it was dropping its $90 billion takeover bid for rival United Technologies because of the target board’s unwillingness to negotiate in the face of what they believe would be intense regulatory and customer opposition – something Honeywell vehemently denies would actually happen.
Honeywell said it disagreed, but that it was unwilling to go any further if United Technologies was not willing.
At some point the mood soured however, and Honeywell says United Technologies has since been unwilling to engage in negotiations. A deal would have created value for investors by combining complementary portfolios, the company said.
The two companies have sparred publicly about a merger, which would create a behemoth with combined sales of nearly $100 billion.
Representatives for United Technologies did not immediately respond to a request for comment.
The Morris Plains, N.J.-based manufacturer said that both firms have agreed in the recent past that “the industrial logic was compelling in a very doable transaction”.
MELVILLE, N.Y. ― Honeywell has acquired privately held RSI Video Technologies (RSI), a leading provider of intrusion detection systems for commercial and residential security applications under the brand Videofied, for approximately $123 million.
Shares of United Tech fell 3.7% to $93.02 in morning trading in New York; Honeywell shares added 2.7% to $104.09.
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United Tech’s shares have risen about 10 percent since February 19, the last trading day before deal talks were first reported.
