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

Honeywell International stock has returned 25% in the last 5 years, a significant underperformance to the S&P 500 Industrials’ 76% return. Thus subdued share price, the recent bullish momentum, and a $5 billion stake by activist investor Elliott Management are three good reasons why buying the stock at current levels is worth it.

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.

Elliott Management is pushing for Honeywell International to split up its business after the activist investment fund built an over-$5 billion stake in the industrial conglomerate.

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.

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.

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

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.