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Honeywell International Inc.’s (HON - Analyst Report) wholly owned subsidiary, Egret Acquisition Corp., initiated the cash tender offer to acquire all outstanding shares of EMS Technologies Inc. for $33 per share, without interest and net of applicable withholding taxes. Moreover, the company will acquire the associated common stock purchase rights.

After the successful completion of the tender offer and fulfillment of certain conditions, a second-step merger will be completed by Egret Acquisition Corp. In this merger, the shares other than those for which dissenters' rights have been exercised will be transformed into the right to receive the same per share price paid in the tender offer. Following this, EMS will become a wholly-owned subsidiary of Honeywell. 

A tender offer statement has been filed by Egret Acquisition Corp. with the Securities and Exchange Commission (SEC) and expires on the mid night of July 25, 2011. The tender can be extended in accordance to the merger agreement made and applicable SEC rules and regulations.

Honeywell’s short-cycle businesses as well as its commercial aerospace spares and residential and commercial retrofit businesses are performing impressively well and are expected to support future growth outlook of the company. First-quarter 2011 was the eighth consecutive quarter in which orders in short-cycle businesses have increased. The company’s long-cycle backlog continued to be at near record levels.

The savings incurred from the implementation of Honeywell’s building techniques will be used for development without any need for outside funding. Further, the program will create job facilities for local contractors and housing authority residents.

Based in Morris Township, N.J., Honeywell International Inc. is a Fortune 100 company providing technical and manufacturing support to customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Major competitors of Honeywell are BorgWarner Inc. (BWA - Analyst Report), United Technologies Corp. (UTX - Analyst Report) and Johnson Controls Inc. (JCI - Analyst Report).

We currently maintain our Neutral rating on Honeywell, with a Zacks #2 Rank (Buy recommendation) over the next one-to-three months.

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