RTN - United Technologies: Buying Carrier And Otis At A Discount
Introduction
With the announcement of the merger between United Technologies (UTX) and Raytheon (RTN), we now have a basis for calculating the implied market value of Carrier and Otis, the two commercial businesses that will be spun off from UTX just prior to the merger. Based on a conservative 2019 earnings forecast for Carrier and Otis, this implied market value appears low by as much as 44% compared to comparable HVAC and elevator manufacturing companies.
United Technologies previously announced its intent to spin off its two commercial businesses, HVAC company Carrier