Textron rises most in four weeks after Sikorsky-finalist report

NEW YORK – Textron Inc. rose the most in four weeks Thursday after the maker of Cessna aircraft and Bell helicopters was reported by Reuters to be a finalist to buy United Technologies Corp.’s Sikorsky rotorcraft unit.

United Technologies is deciding between bids from Textron and Lockheed Martin Corp., Reuters said, citing unidentified people familiar with the matter. United Technologies could still decide not to sell the unit and instead spin it off to shareholders in a tax-free transaction, Reuters reported.

Textron is talking with private-equity firms to help fashion a cash offer for Sikorsky, Reuters reported. That would be a positive approach, according to Julian Mitchell, an analyst at Credit Suisse, because Textron probably wouldn’t have to divest assets and risk becoming “too helicopter-centric.”

“Such a deal could make considerable financial sense,” Mitchell said in a note to investors. He rates the stock as outperform.

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Textron climbed 2.4 percent to $44 at 11:45 a.m. Thursday in New York after gaining as much as 3.3 percent, the biggest intraday rally since June 10. Providence, R.I.-based Textron rose 2 percent this year through Wednesday.

United Technologies CEO Gregory Hayes said last month that a decision on a sale versus a spinoff could come as soon as the end of July. The Hartford, Conn.-based company is unloading Sikorsky to focus on manufacturing divisions spanning jet engines, elevators and air conditioners.

A Sikorsky purchase could be valued at around $8 billion, Reuters reported.

Spokesmen for Textron and Bethesda, Md.-based Lockheed declined to comment to Bloomberg News on the prospect of a Sikorsky acquisition, while a message left with United Technologies wasn’t returned.

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