United Technologies Corp.’s $120 billion aerospace merger with Raytheon is facing stiff resistance from hedge fund moguls.
Activist investor Bill Ackman argued that the deal makes “no sense” in an email to UTC chief executive Greg Hayes, griping that UTC shareholders would be diluted in an all-stock acquisition of an “inferior” company.
“We cannot comprehend the strategic logic behind such a transaction,” Ackman continued in the email made public on Tuesday, which was sent early Sunday following reports that a deal was imminent.
“If the company intends to go forward with such a transaction, we will oppose it, publicly if necessary,” Ackman wrote.
Dan Loeb’s Third Point also opposes the deal, a source told The Post.
Reps from Third Point, which holds 0.8% of shares, according to the fund’s most recent quarterly regulatory filing, declined to comment.
Both Ackman and Loeb supported UTC’s plans to streamline operations and spin off its Otis elevator and Carrier air conditioning businesses to focus on aerospace.
UTC’s proposed merger with Raytheon caught Wall Street by surprise. It would create the world’s second-largest aerospace and defense company, trailing only Boeing.
President Trump also voiced opposition to the deal Monday, telling CNBC the deal made him “a little concerned” that it may weaken competition.
“We are confident that our shareholders will see the merits of this transaction and the value it brings to them and the company,” UTC said Tuesday.