United Technologies-Honeywell merger still up in the air

New York

COULD a merger of United Technologies and Honeywell - two huge industrial conglomerates that have flirted with the idea in the past - ever happen?

It depends on whom you ask.

United Technologies, which began discussions that led to months of exploratory talks, has made it clear that it does not think that a merger would pass regulatory muster. But Honeywell, which presented a takeover offer worth about US$90 billion last week, has continued to argue the merits of a union.

United Technologies chief executive Gregory Hayes said in a CNBC interview on Tuesday: "It ain't going to happen. There is just no way to get it done."

Yet, Honeywell sees the antitrust issue differently; its advisers have calculated that under 5 per cent of the two companies' target sales overlap, said a source briefed on the company's thinking, posing what the manufacturer…