Honeywell not expected to spin off its aerospace business, sources say

Published Fri, Sep 29 20179:58 AM EDTUpdated Fri, Sep 29 201710:57 AM EDT

Key Points

Honeywell is not expected to spin off its aerospace business, sources say.
Activist investor Daniel Loeb has pushed Honeywell to shed the business to boost shareholder value by an estimated $20 billion. He wants to make it an industrial growth company focused on automation and productivity.

A Honeywell Aerospace T55 engine at the Seoul International Aerospace & Defense Exhibition in Goyang, South Korea.

SeongJoon Cho | Bloomberg | Getty Images

Honeywell is not expected to spin off its aerospace business, sources told CNBC's David Faber, and an announcement could be made within two weeks.

Earlier this year, activist investor Daniel Loeb pushed Honeywell to shed the business to boost shareholder value by an estimated $20 billion. He wants to make it an industrial growth company focused on automation and productivity.

Aerospace is the conglomerate's largest segment, representing 40 percent of annual sales. Shares are up 21 percent this year and were up slightly Friday morning.