AlliedSignal to Buy Electronics Unit

AlliedSignal Inc. said it will buy the electronics unit of Johnson Matthey for $655 million and sell its laminates division, shedding a lower-profit business and gaining one with about double the profit margins. AlliedSignal, the world’s biggest maker of flight safety systems, will sell the laminates business to Germany’s Ruetgers for $425 million. The Johnson Matthey business will boost its presence in the booming market for cellular telephones and other electronics. It expects the moves to add to profit in 2000. Chairman Lawrence Bossidy is reshaping AlliedSignal by selling lower-margin units and making such big acquisitions as last month’s agreement to buy automated controls maker Honeywell Inc. for $16.4 billion. Morris Township, N.J.-based AlliedSignal rose 69 cents to close at $65.81 on the New York Stock Exchange.