Why a United Technologies Bid for Rockwell Collins Would Make Sense
United Technology’s last big aeronautics deal – paying $16.4 billion for Goodrich in 2011 – succeeded handily in lowering costs.
United Technologies’ potential acquisition of Rockwell Collins could deliver enough
cost savings to justify paying a reported price tag of nearly $23 billion.
A similar level of efficiency gains at Rockwell Collins would produce $530 million of annual savings.
Taxed at 30 percent, put on a multiple of 10 and discounted, these would be worth more than $3 billion today
