Rockwell Collins’ purchase of aircraft interior finisher B/E Aerospace has attracted the attention of some Wall Street wheeler-dealers who are suggesting it is Rockwell Collins itself that should be up for sale. Starboard Value, a hedge fund that specializes in investing in undervalued companies, has purchased an unknown amount of Rockwell Collins stock in recent days and will vote against the proposed merger, favoring a sale instead. According to Bloomberg, that position has support among some of the venerable avionics company’s biggest investors. So far, Rockwell Collins says it’s going ahead with the B/E deal.
“We remain confident that B/E Aerospace acquisition will create significant value for our shareholders,” Rockwell Collins Chairman and CEO Kelly Ortberg told a Credit Suisse conference last week. “We are filing or have filed all the regulatory activities. We have all of our synergy and integration teams underway, and we expect to receive shareholder approval and close the deal in the spring.” It would cost Rockwell Collins $300 million to break its deal with B/E Aerospace and Ortberg has said the merger is a good fit for both companies because it would allow an integration of the integration of electronics and interiors that aircraft owners are looking for. If the merger goes ahead, the resulting company will have 30,000 employees.
