It argues that separating Honeywell would lead to simplified strategies, focused management, enhanced capital allocation and better operational performance.

Activist investor Elliott Investment Management has taken a more than $5 billion stake in Honeywell International and is calling for the conglomerate to split into two separate companies.

Elliott announced Nov. 12 that it has invested more than $5 billion in the Charlotte, North Carolina-based industrial conglomerate and sent a letter to the company’s board of directors demanding that it break up into two companies, one focused on aerospace and the other on automation.

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

Honeywell (HON) soared 9.5% in premarket trading on a report that activist investor Elliott Investment Management has accumulated a $5 billion stake and wants the industrial conglomerate to evaluate breaking up the company.

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.

Activist investor Elliott Investment Management has built a $5 billion-plus position in industrials giant Honeywell International Inc., according to people with knowledge of the matter.

A breakup of Honeywell's businesses could result in major upside for the blue chip stock over the next two years, the activist investor says.

KEY TAKEAWAYS 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.

Shares of Honeywell International, Inc. ($HON) rose as much as 7.8% on Tuesday to a record high after activist investor Elliott Investment Management disclosed a significant $5 billion stake in the company.