United Technologies Corp (NYSE:UTX) is currently negotiating terms of acquisition of the company Nortek Inc (NASDAQ:NTK), as was reported by the Wall Street Journal. In response to the possible acquisition announcement shares of Nortek jumped more than 20% on Thursday. The share price of the company reached an all time high mark, crossing the $92 a share mark.
Nortek is a diversified company with a focus on manufacturing residential products as well as delivering technology and solutions for improving home and work lifestyles. Nortek had to deal with large debt, about $1.3 billion in 2009, which is when it has filed for Chapter 11 bankruptcy protection. In 2010 the company was no longer under Chapter 11 protection, though the debt problem has remained. Nortek failed to bring its debt accumulation ander control, and currently has about $1.48 billion.
United Technologies provides high technology products and services to several industries and segments, including aerospace and building systems, which where Nortek will be an asset. United Technology has a market cap of $87 billion comparing to about the $1.40 billion Nortek.
There was no conformation whether or not the buyout will take place or the value and date discussed.