The transaction will limit UTC's aerospace business and be funded by issuing shares that will reduce their value at a time when the stock is already trading at a discount, the activist investor said in his message.
“We are extremely concerned about what we have read,” Ackman told Hayes, according to
The Wall Street Journal first reported Ackman's opposition.
In a statement, UTC said, “We are confident that our shareholders will see the merits of this transaction and the value it brings to them and the company. We will be working diligently in the days and weeks ahead to make sure that the details of the transaction are presented to and fully understood by all shareholders.”
Hayes was asked Wednesday about Ackman's criticism. In an appearance on
“I think importantly, we're going to generate a lot of cash,” with
“This is not a defensive acquisition,” Hayes said. “We're coming together out of strength.”
He said he plans to speak soon to Ackman.
Billed as a “merger of equals,” the deal is being criticized in
“This pending deal will likely raise prices, harm workers, stifle competition and undermine innovation,” he said in a statement.” We cannot have the taxpayers and our soldiers bear the cost for the profits of defense contractors.”
UTC announced Sunday the proposed merger with
The proposed takeover would take place after
Shares of UTC closed at
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