Third Point Opposes United Technologies - Raytheon Merger

(RTTNews) - Billionaire investor Daniel Loeb's hedge fund Third Point LLC said that it would not support United Technologies Corp.'s (UTX) proposed merger with Raytheon Co. (RTN) in its current form and plans to vote against the merger, saying that no strategic or financial rationale for the deal.

"we have concluded that the proposed combination of United Technologies and Raytheon is ill-conceived and unlikely to create value for UTC shareholders. The contemplated transaction instead complicates the narrative of a more focused aerospace company that was intended to emerge from UTC's breakup," Third Point said in a statement.

Earlier this month, Aerospace company United Technologies and defense contractor Raytheon agreed to combine in an all-stock merger. The combined entity, to be named Raytheon Technologies Corp., is expected to have about $74 billion in pro forma 2019 sales.