In early trading, the industrial conglomerate’s stock hit $242.77, for a gain of almost 8%, after activist investor Elliott Investment Management disclosed a $5 billion stake in the company. Shares closed up 3.

Shares of Honeywell International Inc. rallied into record territory Tuesday after activist investor Elliott Investment Management L.P. disclosed a large stake and said it was pushing for a breakup of the company.

Honeywell International shares jumped Tuesday to an all-time high, after Elliott Investment Management said it has built a $5 billion-plus position in the industrials conglomerate and is seeking a breakup of the company.

Activist investor Elliott Investment Management has taken a more than $5 billion stake in Honeywell International and is calling for the conglomerate to split into two separate companies.

Elliott wants Honeywell to separate its Aerospace and Automation businesses. It expects such a strategic move to unlock up to 75% upside.

A breakup of Honeywell's businesses could result in major upside for the blue chip stock over the next two years, the activist investor says.

The push comes as new Honeywell CEO Vimal Kapur has led an aggressive repositioning with mergers, acquisitions and spinoffs.

Activist investor Elliott Investment Management has built a $5 billion-plus position in industrials giant Honeywell International Inc., according to people with knowledge of the matter.

It argues that separating Honeywell would lead to simplified strategies, focused management, enhanced capital allocation and better operational performance.

The push comes as new Honeywell CEO Vimal Kapur has led an aggressive repositioning with mergers, acquisitions and spinoffs.