The announcement on Friday as reported by Bloomberg that Rockwell Collins could be on the receiving end of a bid from United Technologies has seen a decent bounce for shares of the aviation, rail and defence company. This is over and above the sizeable rise for the stock over the past year.
As far as what may happen next is concerned, it would appear that there will be closure on this story as soon as the end of this month, with a possible $145 offer on the table according to market rumours from sources.
This is despite the way that other sources said to be familiar with the matter whom Bloomberg has cited saying that it is not clear whether Rockwell Collins and United Technologies are actually holding discussions.
Options were very active here ahead of Friday’s news, and according to derivatives experts are trading in the way one would expect in a M&A situation, with August expiry in focus.