I wonder if the news of UTX selling their Sikorsky helicopter business for $9 billion and stating they are looking at M&A had anything to do with the recent short covering? Being that UTX had a relationship with Capstone in the past and did a few years ago sell our turbines (10 C-65's??) under their own name to the Vatican for a special project and the fact they receive royalties for every C200 sold give shorts something to think about? If Capstone is or about to receive any inquiries about a M&A, we will never hear about it until an announcement is made. Is the risk of getting caught short too much of a risk? Would G.E., Cat. or Siemens counter offer to protect their energy business? I would like to know who now owns all those covered short shares. I believe 45 days after the close of the quarter (Aug 15th) the information is required to be released but some release earlier. If an offer comes before the annual meeting would that necessitate an amended ballot?
My prior post.
Only if......UTX to soon go cherry picking..
Reuters) - United Technologies Corp <UTX.N> is ready to "turn up the heat on M&A" now that the U.S. conglomerate has agreed to sell its Sikorsky helicopter business, Chief Executive Greg Hayes said in an interview on Tuesday.
United Tech agreed on Monday to sell Sikorsky to Lockheed Martin <LMT.N> for $9 billion after a review that began in March. Having settled Sikorsky, which had been a significant focus since March, "now it is time to go off and look at M&A,” Hayes said in an interview after the company reported second quarter results.
"The key for us now in the next six to 12 months is turn up the heat on M&A," Hayes said. "We are looking at everything from $500 million to $5 billion right now. And there’s targets out there."
Hayes said UTC has divested $15 billion worth of businesses in the past five years, including Sikorsky.
"We’re done shrinking UTC with the completion of this divestiture," Hayes said.
They can spend their $500 million on Capstone if they want. I would vote for it.
Any thoughts on this topic from anyone? tia
