UTX exploring Goodrich takeover: sources

Reuters is reporting that  United Technologies is exploring a takeover of aerospace company Goodrich Corp but the two sides are not yet close to a deal, according to a source with knowledge of the situation.

Reuters reported on Friday that United Technologies was lining up $10 billion to $20 billion in financing for a U.S. acquisition that could shape up as its biggest takeover in a decade.

Investors bid up shares of aerospace companies on the news, with speculation increasingly focused on Goodrich. The stock rose to as high as $112 in after-hours trading on Friday, valuing Goodrich at $14 billion.

A move by United Tech could mark the start of a more aggressive phase of consolidation in the aerospace sector to prepare for cuts in defense spending in the United States and Europe.

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