By Megan Davies
NEW YORK (Reuters) - Honeywell International's (HON.N: Quote, Profile, Research, Stock Buzz) chief executive said on Monday that "sporty" prices others have paid for acquisitions meant the company chose to deploy a large chunk of cash in buybacks rather than deals last year.
"I was surprised at the prices that some companies were willing to pay" for acquisitions, said David Cote, Honeywell chairman and chief executive, at the Reuters Manufacturing Summit in New York.
Cote said it was amazing what people could convince themselves they could buy "in the zeal for a deal."
The Morris Township, New Jersey,-based diversified manufacturer found a few acquisition candidates last year but "nowhere near the $2.5 billion or so in cash that we generated -- so we spent almost $2 billion just buying back shares," he said.
Acquisitions that Honeywell made last year included a $508 million deal to buy First Technology, a British company that makes gas-detection devices.
Honeywell is still targeting $1 billion of acquisitions this year, Cote said, reiterating a milestone the company set in January, although stressing there was no commitment to hitting that number.
The company is also continuing to buy back stock. Earlier in February, it said that its board authorized the repurchase of up to $3 billion of common stock.
Honeywell is the world's largest maker of cockpit electronics and also makes products ranging from automation systems for large commercial buildings to industrial chemicals.
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