2 on UNITED TECHNOLOGIES

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WAR CONTRACTOR MAKES BID TO TAKE OVER AMERICAN ELECTION COUNTING

CHICAGO TRIBUNE - United Technologies Corp. made public Sunday an
unsolicited $3 billion bid for Diebold, one of the largest makers of
automated teller machines and voting machines. United Technologies,
which first approached Diebold two years ago, initially made the offer
in private Friday. The bid amounts to $40 a share in cash, or a 66
percent premium over Diebold's closing price Friday of $24.12, United
Technologies said. . .

"This transaction creates significant and immediate value for Diebold
shareholders with no operational risk, while creating long-term value
for UTC shareholders," George David, United Technologies' chairman and
chief executive, said in a statement Sunday.
Founded in 1859, Diebold grew as a provider of security technology for
financial systems. But Diebold was thrust into the spotlight in the 2004
election when it was criticized for flawed electronic voting machines in
Ohio and elsewhere

http://www.chicagotribune.com/business/chi-tech_03_bizmar03,0,2421405.story


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UNITED TECHNOLOGIES MAKES TOP TEN LIST FOR GOVERNMENT CONTRACTOR
MISCONDUCT

PROJECT ON GOVERNMENT OVERSIGHT - United Technologies, based in
Hartford, Conn., is a diversified company that provides high technology
products and services to the building and aerospace industries.

Federal Contract $: $5,050 millon

Total Number of Instances of misconduct: 10

Total Misconduct dollar amount: $323 million

- According to a GAO report cited by Senator Harkin and Representative
DeFazio, United Technologies Optical Systems, reached a settlement for
$150,000 for alleged cost/labor mischarging

- According to a GAO report cited by Senator Harkin and Representative
DeFazio, United Technologies, reached a settlement for $304,729 for
alleged defective pricing.... 

- United Technologies Corporation's Pratt & Whitney Government Engine
and Space Propulsion Division entered into a settlement agreement in
which P&W agreed to pay the government $14.8 million, following a
Defense Criminal Investigative Service investigation. The agreement
resolved charges that P&W violated the False Claims Act by preparing
false purchase orders and submitting false invoices under the Foreign
Military Sales Program administered by the Defense Security Assistance
Agency. . .

- On July 7, 2005, Pratt & Whitney, a subsidiary of United Technologies,
reached a settlement "for potential violations of the Uniformed Services
Employment and Reemployment Rights Act of 1994, . . . under an outsource
labor contract between Pratt & Whitney and EDF Company. On April 24,
2002, Brainard, a Major with the United States Army Reserve, was called
to active military service. . .

- The Occupational Safety and Health Administration of the U.S.
Department of Labor…cited the Pratt and Whitney Aircraft, Turbine
Modular Center, located in North Haven, Connecticut, for alleged willful
violations of the Occupational Safety and Health Act and has proposed
penalties totaling $155,000 for those alleged violations. . . the
company is being cited for four alleged willful  violations, carrying
proposed penalties totaling $154,000. . .

- "Sikorsky Aircraft Corp. will pay a fine of $176,000 to settle an EPA
complaint for violations of the federal stratospheric ozone protection
regulations and two federal hazardous air pollutant standards. . .

- "The [Connecticut] Department of Environmental Protection entered into
an administrative consent order with Pratt & Whitney Division of United
Technologies Corporation on September 7, 2004 for allegedly violating
the standards for underground storage tank systems. . .

- "European Union regulators on Wednesday fined United Technologies'
Otis unit and four other elevator makers $1.3 billion for operating
cartels for the installation and maintenance of elevators and escalators
in Germany, Belgium, Luxembourg and the Netherlands. . .

- Hamilton Sundstrand, a subsidiary of United Technologies, pled guilty
to two counts of violating the federal Clean Water Act and was sentenced
to five years' probation and $12 million in fines. Hamilton Sundstrand
is one of the world's largest manufacturers of advanced aerospace and
industrial systems. The company, in operating its Windsor Locks, Conn.
manufacturing plant, violated its state pollutant discharge permit and
attempted to conceal those violations by knowingly submitting false
environmental reports.

http://www.contractormisconduct.org/index.cfm/1,73,221,html?ContractorID=53


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