Elliott Management Seeks Honeywell Breakup with $5B Stake

Elliott Management has acquired a $5 billion stake in Honeywell International, advocating for the industrial conglomerate to split into two separate businesses: its aerospace division and its automation division. This move aligns with Elliott's strategy of making concentrated investments, as seen with its stakes in Texas Instruments and Southwest Airlines. Honeywell's management is open to engaging with Elliott, as the company has already been simplifying its portfolio under CEO Vimal Kapur. The proposed breakup follows a trend among industrial conglomerates like GE and 3M, which have spun off divisions to enhance focus and valuation.