Shares of United Technologies stock barely budged following the report. The sprawling defense, commercial aerospace and building space company's stock has risen nearly 11 percent this year.
Rockwell Collins' stock has increased even more this year. Shares of the aviation, rail and defense company have increased 28 percent year to date.
Bloomberg, citing sources familiar with the matter, said it's uncertain whether a deal will emerge from the deliberations. Additionally, the news service said it wasn't clear whether Rockwell Collins and United Technologies were holding discussions.
Both companies declined to comment.