United Tech (UTX) a Frontrunner in Bids for GE's (GE) Fire Alarm and Surveillance Unit
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Shares of United Technologies Corp. (NYSE: UTX) are up about 0.50% this morning as UTX emerges as the front runner in a bidding war for General Electric's (NYSE: GE) fire alarm and surveillance systems unit, Bloomberg reports this morning.
UTX would benefit from the deal by getting more dealers and customers. The deal would also provide locked-in revenue streams over several years, as the company tries to expand their service contract offerings for equipment and systems in commercial buildings.
Spokesmen for both GE and UTX declined to comment on the rumors.
UTX acquired Chubb and Kidde Fire early in the decade, which allowed the company to build up its Fire and Security division. Ari Bousbib oversees Otis, Carrier, and UTC Fire and Security, which contributed about 60% to the companies total sales.
GE predicts that the Fire Alarm and Surveillance would gross about $3 billion in sales by 2011, up from $1.8 billion in 2007.
UTX would benefit from the deal by getting more dealers and customers. The deal would also provide locked-in revenue streams over several years, as the company tries to expand their service contract offerings for equipment and systems in commercial buildings.
Spokesmen for both GE and UTX declined to comment on the rumors.
UTX acquired Chubb and Kidde Fire early in the decade, which allowed the company to build up its Fire and Security division. Ari Bousbib oversees Otis, Carrier, and UTC Fire and Security, which contributed about 60% to the companies total sales.
GE predicts that the Fire Alarm and Surveillance would gross about $3 billion in sales by 2011, up from $1.8 billion in 2007.
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