United Tech makes progress in Rockwell Collins talks: Report

Dhiraj Singh | Bloomberg | Getty Images

An employee, left, shows simulation system to an attendee at the Rockwell Collins booth during the Aero India air show at Air Force Station Yelahanka in Bengaluru, India.

United Technologies, owner of jet-engine maker Pratt & Whitney, has made progress in its talks to acquire aircraft component manufacturer Rockwell Collins as it seeks to bulk up its aerospace business, a person familiar with the matter said on Tuesday.

The two companies are close to agreeing on an acquisition price and could announce a deal as early as next week, said the source, who asked not to be identified because the negotiations are confidential.

The person did not comment on a possible price. The Wall Street Journal reported earlier on Tuesday that the companies were discussing a per-share price for Rockwell Collins of $140 or less.

Rockwell shares closed up 2 percent at $130.74 on Tuesday, giving the company a market capitalization of around $21 billion. United Technologies shares were up 2.9 percent at $118.70.

United Technologies, which also owns Otis Elevator and air-conditioner maker Carrier, declined to comment. Rockwell Collins did not immediately respond to requests for comment.

United Technologies and Rockwell Collins have been trying to hammer out a deal for more than a month. Reuters reported on Aug. 4 that United Technologies had made an offer for Rockwell.

A combination of the two large aerospace suppliers would meld Rockwell’s commercial and military aircraft avionics business with United Technologies’ broad portfolio that includes aircraft engines, structures, cockpit and cabin controls, ventilation systems and other electronic and mechanical devices used in aviation.