Whenever a major acquisition happens in an industry, the opportunity arises for investors to look around for a similar type of transaction within that industry, even if it is on a smaller scale. This is the situation in the aerospace industry following United Technologies' (NYSE:UTX) massive acquisition of Rockwell Collins (NYSE:ROC) for approximately $23 billion in cash and stock ($30 billion when the $7 billion debt load of Rockwell Collins is included). The investment community did not approve of the hefty price tag United Tech agreed to pay for Rockwell, which equates to $140/share, and sent UTX shares downward approximately 6% following the announcement. Forbes pointed outthat when all forms of debt and unfunded pension liabilities are included, the price of the deal rises to $33 billion. While many investors and analysts are trying to decipher just how much of an undue premium (if any at all) UTX paid for Rockwell, it's worthwhile to re-evaluate companies in the same industry that could be potential takeover targets. Other market behemoths in aerospace may be looking to make a similar acquisition to keep up with United Technologies.
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