Shares of United Technologies have been on a steady climb ever since reports of a mystery investor building stake in the company came out. As the rally gathered momentum and the stock gained more than 3% on Wednesday, various sources close to the matter revealed that the investor was none other than Bill Ackman.
Ackman is an investor who tasted success at a very young age, even before founding Pershing Square Capital Management, the hedge fund management company he owns.
While details of the activist investor’s position in United Technologies is yet to be ascertained, the move comes after an official communique from the tech conglomerate recently hinted at its plans to split the aerospace, elevator and climate-control divisions.
Last week, United CEO Greg Hayes at an investor meet had hinted at plans to restructure the company later this year.
According to reports, the individual businesses are expected to operate as publicly traded entities. The aerospace business is already in expansion mode following the acquisition of Rockwell Collins.
Depending on the size of his stake in United Technologies, Ackman is likely to play a crucial role in formulating modalities for the planned restructuring.
The aerospace business is already in expansion mode following the acquisition of Rockwell Collins
The billionaire investor has been looking for viable options ever since he closed position in nutrition company Herbalife last year, following an unsuccessful bet on the stock’s performance. Pershing Square’s recent investment in Nike was part of the under-performing fund’s efforts to regain lost glory, by focusing on its core investment principles.
Considering the protracted downturn of Pershing Square since 2014, Ackman desperately wants to lay his hands on assets that promise assured returns.
In the absence of any formal announcement from United Technologies and Pershing Square, the market is abuzz with speculations about the deal.