Activist investor Elliott Investment Management stated in a letter addressed to Honeywell’s Board of Directors that it wants Honeywell International Inc. to spin-off its Aerospace Technologies business.

Elliott also questioned whether Honeywell's investments in quantum computing might be diverting resources. Credit: JHVEPhoto/Shutterstock. Activist investor Elliott Investment Management has called for Honeywell to split into two separate businesses ...

In early trading, the industrial conglomerate’s stock hit $242.77, for a gain of almost 8%, after activist investor Elliott Investment Management disclosed a $5 billion stake in the company. Shares closed up 3.

Honeywell does not seem to have got the memo that conglomerates have become achingly unfashionable. At a time when the global trend is for industrial empires to break up and generate returns by specialising in a single area of business, boss Vimal Kapur has been bulking up.

Activist investor Elliott Investment Management said Honeywell should split into two separate businesses on Tuesday, following in the footsteps of other industrial conglomerates that have broken up in recent years.

Shares of Honeywell International Inc. rallied into record territory Tuesday after activist investor Elliott Investment Management L.P. disclosed a large stake and said it was pushing for a breakup of the company.

The push comes as new Honeywell CEO Vimal Kapur has led an aggressive repositioning with mergers, acquisitions and spinoffs.

As Honeywell’s largest active investor, Elliott Investment Management’s letter to Honeywell International argued that Honeywell should split into two entities—Honeywell Aerospace and Honeywell Automation.

Honeywell International shares jumped Tuesday to an all-time high, after Elliott Investment Management said it has built a $5 billion-plus position in the industrials conglomerate and is seeking a breakup of the company.