New York, Feb 22: Industrial group United Technologies Corp, which owns jet engine maker Pratt & Whitney, was expected to acquire aerospace components supplier Sundstrand Corp for $4 billion, The Financial Times reported on Monday.The Financial Times newspaper, in an advance copy of the story provided to Reuters, said the boards of both companies met over the weekend and were expected to approve the deal.Exact Financial details were not available, the Financial Times said. Sundstrand has a market capitalisation of about $3.2 billion and the newspaper reported one person close to United Technologies said the deal would be worth about $4 billion.
Neither company could be reached for comment by Reuters on Sunday evening.Sundstrand stock closed Friday up $6.88 at $58.50 on the New York Stock Exchange and options trading on the Chicago Board Options Exchange also was higher than usual amid takeover rumours.
Sundstrand suffered a major scandal in the mid-1980s when it pleaded guilty to fraudcharges after admitting it overbilled the US government for defence related aircraft components.
United Technologies, which also owns Otis elevators and Carrier air conditioners, said in January that it hired Goldman Sachs to explore strategic alternatives for its automotive business.
The Detroit-based auto unit contributed about 11.5 per cent of the company's $25.72 billion revenues in 1998.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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