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United Technologies shares rise after CEO says he is thinking of breaking up company into three parts

  • United Technologies is looking into breaking up its portfolio of businesses which include elevators, jet engines and air conditioners, CEO Greg Hayes said at a conference.
  • "Is UTC a more valuable property together or is UTC better off in three separate businesses?" Hayes said. "That's the question for the board."
  • The move may be following General Electric's lead. The reeling industrial giant could be splitting itself up this year, sources told CNBC's David Faber last month.
  • United Technologies rose 3.3 percent on Thursday.
United Technologies Chairman and CEO Greg Hayes.
Brendan McDermid | Reuters
United Technologies Chairman and CEO Greg Hayes.

United Technologies is thinking of splitting up key parts of its business, its chief executive said at a conference.

The company is looking into breaking up its portfolio of businesses which include elevators, jet engines and air conditioners, CEO Greg Hayes said Wednesday at the Barclays Industrial Select Conference in Miami, noting a decision on the matter will be made by year-end.

"Is [United Technologies] a more valuable property together or is UTC better off in three separate businesses?" Hayes said, according to a transcript. "That's the question for the board. That's the question we continue to study."

"There are, as you can imagine, significant dis-synergies with splitting up the portfolio, as well as one-time costs," Hayes added.

United Technologies rose 3.3 percent on Thursday.

The move may be following General Electric's lead, another member of the Dow. The reeling industrial giant may be splitting itself up this year after poor shareholder returns over the past year, sources told CNBC's David Faber last month.

Hayes' comments were first reported by Bloomberg News.

Shares of United Technologies are up 18.7 percent over the past year, lagging the Dow which has risen 20.2 percent in that time. GE, meanwhile, has shed more than half of its value over the past 12 months.