(Adds Rockwell Collins' comment)
Nov 30 Activist investor Starboard Value LP has
acquired a stake in aircraft component maker Rockwell Collins
Inc and is questioning its $6.4 billion purchase of B/E
Aerospace Inc, a person familiar with the matter said
Bloomberg reported earlier on Wednesday, citing sources,
that Starboard had asked Rockwell Collins to explore alternative
options, including selling itself. Rockwell Collins has yet to
receive any formal letter from Starboard, the source said.
The source asked not to be identified because the matter is
Rockwell's shares were up 2.7 percent at $95.20 in extended
trading on Wednesday, while B/E Aerospace was down 3.4 percent
"We remain confident that the acquisition of B/E Aerospace
will create significant value for our shareholders," a Rockwell
"We're excited to bring together these two industry leaders
and look forward to closing this transformative transaction in
the spring of 2017."
In October, Rockwell Collins struck a deal to buy aircraft
interior maker B/E Aerospace, to expand the range of products
Rockwell Collins supplies to major commercial and business
The companies have little product overlap, with Rockwell
best known for avionics, flight controls and cabin connectivity,
while B/E Aerospace is a major provider of aircraft seats,
galleys, lighting and other systems.
Starboard and B/E Aerospace did not immediately respond to
requests for comment.
Up to Wednesday's close, Rockwell's shares had risen about
10 percent since Oct. 21, the last trading day before the deal
was announced, while B/E Aerospace's increased about 19 percent.
(Reporting by Ankit Ajmera in Bengaluru and Greg Roumeliotis in
New York; Editing by Lisa Shumaker and Shounak Dasgupta)