Aaron McDade
2 min read
In This Article:
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Honeywell and Elliott Investment Management have come to a deal after months of pressure from the activist investor.
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One of Elliott's partners will join Honeywell's board, and the sides agreed to non-disparagement and other clauses.
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Honeywell announced plans earlier this year to split into three separate companies, one of the measures Elliott had recommended.
Honeywell (HON) on Wednesday announced an agreement with activist investor Elliott Investment Management that will see Honeywell add one of Elliott's partners to its board.
Elliott partner Marc Steinberg will join Honeywell's board at the end of the month for a term through next year's shareholder meeting.
The companies also agreed to a wider deal that includes a non-disparagement clause, Elliott's agreement to vote in favor of Honeywell's board candidates, and against any other outside nominees or shareholder proposals not backed by the company.
Elliott also agreed to a "standstill" clause, stating that it won't acquire shares to move above a 4.9% stake in Honeywell's outstanding shares, look to call a board meeting, or work to remove any other board members, among other provisions.
Last November, Elliott announced that it had built a stake in Honeywell and said it had recommended to Honeywell's board that the conglomerate spin off its aerospace and automation businesses, similar to how General Electric split itself into three standalone companies last year.
Honeywell said in February that it would go through with the transformation, splitting into three separate public companies by the second half of next year. The Wall Street Journal reported earlier Wednesday morning that Honeywell and Elliott were approaching a deal.
Honeywell shares saw a slight uptick shortly after markets opened Wednesday. They entered the day flat on the year, after recovering from a 15% drop in the days following the Trump administration's April 2 tariff announcement.
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