Honeywell Bid for Novar Is Expected

Honeywell International Inc. is interested in buying British industrial holding company Novar for $1.5 billion, two newspapers reported on their websites Sunday.

The Financial Times reported that the offer is likely to be welcomed by Novar, which was recently subject to a hostile takeover bid.

And the Wall Street Journal said Novar’s board already has approved the deal.

Novar, which reported 2003 sales of $2.5 billion, is a diversified company with interests in electronics, aluminum and printing checkbooks.

The Financial Times said the Honeywell bid could come today and was understood to offer $3.54 to $3.64 a share.

An offer made last month by Melrose, an investment company, was valued at $3.31 a share, or about $1.2 billion. That bid was rejected.

The Wall Street Journal reported that Honeywell mainly is interested in Novar’s building security and fire alarms business, and is likely to sell off its other businesses, according to people familiar with the deal.

Many of Novar’s holdings are based in the United States, including its San Antonio-based Clark American subsidiary, which is one of the largest printers of bank checks in the country. It also owns Chicago-based Indalex Inc., which makes aluminum components.

Honeywell, which is based in Morristown, N.J., makes a variety of products, including airplane parts, heating and ventilation systems and materials used in electronics. It reported 2003 sales of $23 billion.