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Sunday, December 9, 2012

Ingersoll-Rand to spin off security business -sources, (NYSE: IR)

Ingersoll-Rand Plc is expected to announce as soon as Monday it will spin off its security division, two people familiar with the matter said, as the industrial conglomerate cedes to pressure from activist investor Nelson Peltz to unlock more shareholder value.The company, which has a market value of more than $14.5 billion, also plans to purchase back shares and increase dividends, one of the sources said.The spin-off, buybacks and dividend hikes come as part of a strategic review undertaken by Ingersoll after Peltz's Trian Fund Management LP acquired a stake of about 7 percent and proposed a break-up of the company. Peltz joined the company's board in August after three months of agitating for changes at the manufacturer.Ingersoll's security technology division -- which makes mechanical and electronic locks as well as steel doors -- had operating income of more than $330 million in 2011 on revenue of $1.63 billion.

Ingersoll-Rand plc (IR-Ireland) is a diversified, global company that provides products, services and solutions to enhance the comfort of air in homes and buildings, transport and protect food and perishables, secure homes and commercial properties. Shares of IR traded higher by 1.02% or $0.49/share to $48.69. In the past year, the shares have traded as low as $29.68 and as high as $49.31. On average, 2543050 shares of IR exchange hands on a given day and today's volume is recorded at 3869351.