Rolls-Pratt Merger Story Called ‘Preposterous’

United Technologies Corp. called a report that says Rolls-Royce is studying plans to buy its Pratt & Whitney unit “preposterous,” while Rolls declined to comment on a possible merger of two of the world’s biggest jet-engine makers. Sunday Business newspaper in London, citing an unidentified advisor to Rolls, said the company was studying a merger proposal. Earlier comments by Rolls executives suggest such a merger is unlikely. Rolls would be the dominant partner in any merger, according to the proposals put together by investment banks including N.M. Rothschild & Sons Ltd. and Goldman Sachs Group Inc., which worked on Rolls’ $917.5-million acquisition of Vickers last year, the London paper said. Hartford, Conn.-based United Technologies on Sunday suggested Pratt would want control in any combination. “The report is preposterous,” said United Technologies spokesman Peter Murphy. “However, if Rolls is looking for a buyer, they have Pratt & Whitney’s phone number.” The senior management teams of Rolls and Pratt haven’t discussed the proposals, the paper said. Rumors of Rolls’ interest in Pratt have appeared in the media periodically for the last five years. On Friday, United Technologies stock closed up 88 cents at $65 on the New York Stock Exchange.