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.
For the complete story at Reuters:
http://www.reuters.com/article/2011/09/18/us-goodrich-utx-idUSTRE78H2OK20110918