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GE Acquisition Could Be A Honey of a Deal

Concerns linger, but Honeywell purchase should pay, fund managers say.

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If any company can digest a business as big and diverse as Honeywell (HON), it's probably General Electric (GE), which over the weekend maneuvered to snatch Honeywell from under the nose of its rival United Technologies (UTX), a couple of fund managers said Monday.

GE and its redoubtable Chairman and Chief Executive Jack Welch have a record of making mergers work and the fact that Welch himself deems the deal important enough to delay his much anticipated retirement by at least eight months is good news for long-term shareholders of GE, said stock analyst Rob Plaza.

Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.