BRIEFLY / AEROSPACE : Stockholders OK AlliedSignal-Honeywell Deal

AlliedSignal Inc. shareholders overwhelmingly approved the company’s purchase of Honeywell Inc., and Honeywell shareholders likewise voted strong approval of the $14.9-billion deal. The transaction, which would create an avionics products powerhouse with combined annual sales of $25 billion, is expected to be completed in the fall but faces tough scrutiny from U.S. and European regulators. On Monday, the European Commission started a full investigation into the deal on concerns about the dominance the combined company would have over Europe’s avionics industry. Honeywell is the main supplier of flight management systems for Europe’s Airbus Industrie consortium. AlliedSignal Chairman Lawrence Bossidy said the two companies have been working with European and U.S. regulatory officials to resolve competition concerns. “These issues are not insurmountable, and we would expect to close our transaction in the fall,” he said. The combined company would keep the Honeywell name and use AlliedSignal’s headquarters in Morristown, N.J. Honeywell Chairman Michael Bonsignore would head the new company, with AlliedSignal’s Bossidy planning to retire next April. AlliedSignal’s shares rose $1.56 to close at $63, while Honeywell moved up $2.25 to close at $115.63, both on the New York Stock Exchange.