Honeywell for Sale - GE Buys


Thread Starter

Jim Pinto

Automation Listers :

I have predicted for at least a couple of years that Honeywell IAC would be sold - especially after Honeywell merged with Allied Signal in '99, and the new Honeywell was simply "milking" the old TDC installed base.

Just last week, starting Sunday, 15 October 00, events precipitated the sale of all of Honeywell, through a merger with United Technologies, which was immediately pre-empted by General Electric (over the weekend, on 21 October 00) for the obvious synergies. Inevitably, Industrial Controls (IAC) will now be divested - probably to Siemens. The employees at IAC are the real losers - they have been short-changed for the better part of a decade and now they will simply get jerked around again.

As part of the sequence of our earlier threads : "Automation in Decline" followed by "Companies in Trouble", I feel that the "whole" story, and the unbiased perspective, should be told. This is in my eNews dated 21 October 00, which is already on the web at :

You can read Pinto's prognostications on the web at :

I would indeed be interested in comments and feedback, from Honeywellers, and others.

Jim Pinto
email: [email protected]
San Diego, CA. USA

Wayne Dowdle

Kind of ironic that Honeywell IAC in Phoenix was once owned by GE and sold to Honeywell, does anybody remember the GE 4400's, 4500's which became Honeywell?
Wayne Dowdle
Walt and list,

There are things I don't understand about this. If it's true that it's about protecting Euro interests, why is there is so little about it in the Euro press? There was nothing in Le Monde, and only a US wire story in BerlineOnline. This makes the Pintolian Oracle look correct.

On the other hand, the US arbitrage market action makes the talk look real; and those guys are playing with mass quantities of real Federal Reserve Notes.

Go figure!

Willy Smith (only for himself as an opinionated individual)
Walt Boyes <[email protected]> reported :

>At the eleventh hour, GE and Honeywell are trying to
>convince the European Union to let their merger go forward.

Jim Pinto comments :

I have reported ( eNews 22 June '01) :
that GE will NOT proceed with the acquisition/merger
of Honeywell, because their due diligence showed that
the deal was simply not clean enough. I re-confirm
that analysis.

In the GE/Honeywell merger agreement, there was most likely
a penalty for backing out of the merger. Honeywell will
no doubt try to enforce that penalty if GE backs off without
good reason.

GE had previously said that they would not negotiate further.
And, last week's comment from Jeffrey Immelt, GE incoming CEO,
that there was "zero chance" of the deal going through brought
a protest from Honeywell (who for their part insisted that
they would "do everything possible" to make the deal happen.

This new "eleventh hour" try to negotiate is, in my opinion,
just a ploy to placate the political forces, to show that GE
is making a good effort to make the deal happen. In reality,
(my opinion) GE is simply trying to avoid the real possibility
of merger-breakage penalties.

I'll be covering this, and analysis of a couple of similar
industrial automation news items, in the next issue of eNews. Feel free to sign-up at :
Jim Pinto
Tel : (858) 353-JIMP (5467)
email : [email protected]
San Diego, CA., USA