"Third Point believes that a separation of the Aerospace unit via a spin off transaction would result in a sustained increase in shareholder value in excess of $20 billion," a letter from the fund said. "Spinning off Aerospace would transform Honeywell into an industrial growth company with a focus on automation and productivity.'
Third Point owned 1.4 million shares of Honeywell as of Dec. 31. But the fund has substantially increased that position and it is now a top-five holding, according to a person familiar with the fund. Shares of Honeywell gained 3.5 percent in morning trading.