Honeywell's Future: Should It Split or Stay Together?

Elliott Management, an activist investor, has a massive $5 billion stake in Honeywell. They're pushing for a big change: splitting the company into two. The idea is to create one company for aerospace stuff, like engines and avionics, and another for automation, like sensors and control systems. Elliott thinks this could boost the company's value by up to 75% in the next two years. Honeywell's CEO, Vimal Kapur, took the reins in 2023 and has been active in buying other businesses. But Elliott argues that Honeywell's complex structure and struggling portfolio have held it back since 2019. They say it's time for a change. Honeywell's spokesperson responded that they value their shareholders' opinions and are ready to talk. Despite the push from Elliott, Honeywell's shares rose about 5% on Tuesday.