would a split pay off? By Reuters
By Utkarsh Shetti and Nathan Gomes
(Reuters) – Diversified conglomerates were long a fixture of the U.S. stock market landscape, with the Dow industrials bolstered by big names such as 3M, General Electric (NYSE:), United Technologies (NYSE:) and others. But many of those companies have since broken apart, and shares of their spinoffs have surged.
Activist Elliott Investment is arguing that Honeywell (NASDAQ:) should be next on the list. Post-breakup shares of companies like General Electric indeed have thrived, as firms elect to separate disparate units into smaller companies.
“Breakups of conglomerates in this space have typically created significant value,” said Jake Levinson, analyst at Melius Research.
Elliott’s $5 billion-plus…
