Tag: split

  • Honeywell to split in three after pressure from activist investor Elliott Management

    Honeywell to split in three after pressure from activist investor Elliott Management

    • Industrial and aerospace giant Honeywell said on Thursday it will split into three independently listed companies.
    • Honeywell said it will separate its aerospace and automation businesses into separate entities, alongside its previously announced spin-off of the advanced materials unit.
    • Honeywell said it intends to complete the separation in the second half of 2026, which would be tax-free for its shareholders.

    Honeywell said on Thursday it will split into three independently listed companies, breaking up one of America’s last standing conglomerates just months after activist investor Elliott Management took a $5 billion stake in the industrial giant.

    Honeywell’s shares, however, fell nearly 2.5% in premarket trade, reversing course from early gains after the company forecast downbeat sales and profit for 2025.

    The company said it will separate its aerospace and automation businesses into separate entities, alongside its previously announced spin-off of the advanced materials unit.

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    With Honeywell’s decision, the ranks of the nation’s leading industrial conglomerates have dwindled even further, following similar choices in recent years by 3M, General Electric and United Technologies to split off major divisions.

    The industrial and aerospace giant has been on a deal-making spree under CEO Vimal Kapur, shedding assets that are not focused on the aviation, automation and energy sectors.

    Despite several smaller moves, Elliott, whose stake in Honeywell is its largest single investment, argued the company needed to split.

    An aircraft engine is tested at Honeywell Aerospace in Phoenix, Arizona, on September 6, 2016. Honeywell announced that it will split into three separate companies. (Reuters/Alwyn Scott/File Photo / Reuters)

    Honeywell attracted Elliott’s attention as its stock price underperformed the market. Its shares had risen 7.7% in 2024 until November 11, a day before Elliott disclosed its position, while the broader market had gained 26.6% in the same period.

    Analysts had previously estimated Honeywell’s high-margin aerospace business could be worth between $90 billion and $120 billion, including debt.

    The airline industry, faced with a shortage of new jets, has had to resort to flying older, more maintenance-intensive planes during a travel boom, pushing up sales for players such as Honeywell that provide aftermarket services and parts.

    The aerospace unit is Honeywell’s biggest revenue generator, accounting for about 40% of the company’s total revenue in 2024, and counts Boeing and Airbus among its customers. It also has contracts with the U.S. government, providing communication and navigation systems, among other services.

    Honeywell said it will separate its aerospace, automation and advanced materials units into three distinct entities.

    Honeywell said it will separate its aerospace, automation and advanced materials units into three distinct entities. (Reuters/Denis Balibouse/File Photo / Reuters)

    Honeywell had announced plans to spin off its advanced materials unit into a publicly traded company in October. It said in December it was considering a spinoff of its aerospace business, after Elliott’s push.

    The company said it intends to complete the separation in the second half of 2026, which would be tax-free for its shareholders.

    Elliott’s push is not the first time Honeywell has faced activist pressure to break up the company. In 2017, it managed to shrug off Daniel Loeb’s Third Point, which urged the company to spin off its aerospace division.

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    The industrial giant has been pruning its portfolio through a string of divestments and acquisitions, but such a large break-up would be a first for the more than 100-year-old company.

    It separately forecast an adjusted profit per share of between $10.10 and $10.50 for 2025, falling short of analysts’ average estimate of $10.93 according to data compiled by LSEG.

    Its sales expectations of between $39.6 billion and $40.6 billion for the year also fell short of Wall Street expectations of $41.22 billion.

  • Foreign policy experts split on whether Trump will follow through with Gaza takeover: ‘It’s a wakeup call’

    Foreign policy experts split on whether Trump will follow through with Gaza takeover: ‘It’s a wakeup call’

    Middle East and foreign policy experts are split on President Donald Trump’s eyebrow-raising call for the U.S. to “take over” Gaza, with some arguing it is a reversal of his “America First” policy and others saying it is just the catalyst required to secure lasting change in the region.

    Sen. Rand Paul, R-Ky., led the charge opposing Trump’s proposal on Wednesday, declaring on X that taking over Gaza would be “yet another occupation to doom our treasure and spill our soldiers’ blood.” Some Middle East experts see Trump’s move differently, however.

    James Carafano, a senior counselor at the Heritage Foundation, argued that Trump’s proposal was “dressing down to the entire international community.”

    “[It’s] a wake up call that the world really needs to get serious. The notion that we could ever have a safe harbor in the Middle East where people can organize something like Oct. 7 again is unthinkable,” he told Fox News Digital on Wednesday. “We are not going back to the bad old days of a hellhole run by Hamas and funded by UNRWA, so people need to start putting some serious equity on the table.”

    ‘LEVEL IT’: TRUMP SAYS US WILL ‘TAKE OVER’ GAZA STRIP, REBUILD IT TO STABILIZE MIDDLE EAST

    THE HISTORY OF GAZA AMID TRUMP’S PLAN TO REBUILD ENCLAVE

    Michael Singh, managing director at the Washington Institute for Near East policy, argued that Trump’s offer is meant to be a catalyst for the region, rather than a real plan for the U.S. to deploy in Gaza.

    “President Trump obviously likes to be provocative, and his proposal on Gaza is certainly that,” Singh told Fox. “It will elicit strong reactions in the region, but at its heart are two principles that are spot on: America needs to take a leadership role in the Middle East on one hand, but our regional partners need to step up and do more on the other.”

    U.S. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu answer questions during a joint press conference in the East Room at the White House in Washington, D.C., on Feb. 4, 2025. ( REUTERS/Leah Millis)

    “I do not think the U.S. will take over Gaza; but if President Trump’s salvo prompts regional states to step forward with practical ideas of their own and to do more to address regional crises, it will have served its purpose,” he added.

    TRUMP’S MIDDLE EAST ENVOY EXPLAINS GAZA TAKEOVER PROPOSAL: ‘MORE HOPE’ FOR PALESTINIANS’ FUTURES

    While delivering remarks alongside Israeli Prime Minister Benjamin Netanhyahu on Tuesday, Trump said that Palestinians should be settled outside the Gaza Strip, and that the U.S. will transform the region, which he described as a “demolition site.”

    “The U.S. will take over the Gaza Strip,” Trump declared, saying, “we’ll own it, and be responsible for dismantling all of the dangerous unexploded bombs and other weapons on the site … level it out, create an economic development that will supply unlimited numbers of jobs and housing for the people of the area.”

    “I do see a long term ownership position,” Trump said of the region.

    Hamas

    Hamas gathers in a show of strength during a parade by the terror group in Gaza on Jan. 25, 2025. (TPS-IL)

    Joe Truzman, a senior research analyst at the Foundation for the Defense of Democracies who focuses on Palestinian militant groups and Hezbollah, argues Trump is serious about his plan rather than using it as diplomatic posturing.

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    “A plan to end the cycle of violence is in the United States’ interest and does not conflict with Trump’s America First policy,” Truzman told Fox, noting that the weakened state of Hamas and Iran’s terrorist proxies in the region present a unique opportunity.

    “Trump is serious about his plan. Hamas, Iran, and other bad actors in the region who’ve been heavily invested in the conflict understand this. How they react in the coming days and weeks will be an important sign of what is in store for the region,” he added, predicting pushback from al-Qaeda and other groups that benefit from instability in the region.

  • Legal experts say Kash Patel’s opposition to warrant requirement is not a major split

    Legal experts say Kash Patel’s opposition to warrant requirement is not a major split

    Kash Patel, President Donald Trump’s pick for FBI director, claimed Thursday that he won’t stand for federal law enforcement needing a warrant for surveillance in some scenarios because it’s plainly impractical in real-time practices. Despite lawmakers’ surprise at his opposition, legal experts say his take is far from unusual within the law enforcement arena.

    Patel was peppered with questions Thursday on a provision called Section 702 of the Foreign Intelligence Surveillance Act. When asked if he believed that a warrant requirement is “practical and workable or even a necessary element of 702,” Patel said he had issues with “those that have been in government service and abused it in the past.” Patel said that because of the viability of abuse, “we must work with Congress to provide the protections necessary for American citizens dealing with these matters.”

    “Having a warrant requirement to go through that information in real time is just not comported with the requirement to protect American citizenry,” Patel said during his Senate hearing. “I’m all open to working with Congress on finding a better way forward. But right now, these improvements that you’ve made go a long way.”

    4 OF THE BIGGEST CLASHES BETWEEN PATEL, SENATE DEMS AT HIS CONFIRMATION HEARING

    “The fact that the soon-to-be head of the nation’s, sort of, top law enforcement agency takes the position that is favored by law enforcement shouldn’t surprise anybody,” former assistant district attorney and criminal defense attorney Phil Holloway told Fox News Digital. 

    “When Mr. Patel answered the question the way that he did, that answer is adverse to the public positions taken by lawmakers on both sides of the aisle.” 

    Patel, throughout his testimony, emphasized his interest in working with Congress if he were to head the FBI.

    President Donald Trump’s pick to head the FBI, Kash Patel, indicated during his Senate hearing on Thursday that while FISA’s Section 702 can be used appropriately, a warrant requirement can be impractical in real-time.  (AP)

    “Some lawmakers have absolutely called for the necessity of a warrant in these situations. And so it makes sense that the senators would ask the nominee to run the FBI whether or not he has an opinion on it,” Holloway continued. “But, ultimately, it’s not his call.”

    KASH PATEL HAMMERS ‘GROTESQUE MISCHARACTERIZATIONS’ FROM DEMS AMID FIERY FBI CONFIRMATION HEARING

    “I’ve always thought that there’s a middle ground here where you don’t have to. And I think there are some situations that warrant a warrant and deserve a warrantless search,” Palm Beach County, Fla., state attorney Dave Aronberg told Fox News Digital. “And I think Patel’s remarks show that he thinks the same way.”

    Aronberg noted that under U.S. law, there is a warrant exception under exigent circumstances, i.e. emergency situations, where it is impractical to obtain a warrant. 

    Kash Patel

    Kash Patel was peppered with questions Thursday on a provision called Section 702 of the Foreign Intelligence Surveillance Act. (Getty Images)

    “What Kash Patel is saying is that there may be some situations that may be in that gray area where you shouldn’t have to get a warrant,” Aronberg said. “And I am encouraged by his comments because I do think that law enforcement needs flexibility when it comes to national security matters, especially with the very real threat of terrorism here on our shores.”

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    Congress voted to pass a renewal of FISA’s Section 702 last April. The legislation serves as a governmental tool in gathering intelligence on foreign subjects using the compelled assistance of electronic communication service providers. 

    If the renewal had not been passed, the expiration would have meant companies would not be forced to comply with the government’s requests for surveillance aid under the bill. 

    Kash Patel Donald Trump split

    Kash Patel and President Donald Trump. (Getty Images)

    Without the FISA section’s reauthorization, the government would be required to seek a warrant to compel any such assistance, which is a process that can span extended periods of time. 

    Earlier this month, a federal district court ruled that the federal government had violated the Fourth Amendment when it searched the communications of an Albanian citizen residing in the U.S. at the time of his arrest without a warrant. The information had been collected under FISA’s Section 702. 

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    “The individual rights of people in the United States under our Constitution come first,” Holloway said. “So having constitutional requirements that sort of frustrate or perhaps slow down law enforcement, this is a tension that is not new at all. And so what we’re seeing is this playing out.”

    Fox News Digital’s Liz Elkind and Julia Johnson contributed to this report.