Hedge fund Elliott builds $1 billion stake in Johnson Controls - Bloomberg News

Investing.com -- Shares in Johnson Controls (NYSE:JCI) jumped in premarket U.S. trading on Monday after Bloomberg News reported that activist investor Elliott Investment Management had built a stake worth more than $1 billion in the building solutions provider.

Elliott is now among the top ten investors in the firm, Bloomberg reported, citing people familiar with the matter.

Representatives from Johnson Controls and Elliott did not immediately respond to a request for comment from Reuters, the news agency reported.

Johnson Controls has been attempting to divest its non-core businesses in a bid to streamline the company. Reuters has previously reported that Robert Bosch GmbH, Lennox International (NYSE:LII) and Samsung Electronics (KS:005930) are all among industrial firms vying to acquire Johnson Controls' heating and ventilation assets in particular, which are worth over $6 billion.

A spokesperson from Johnson Controls also told Reuters in March that it was in the "early stages of pursuing strategic alternatives of our noncommercial product lines."

Earlier this month, Johnson Controls, which produces fire, HVAC and security equipment for buildings, backed its previously-lowered annual outlook for adjusted earnings per share of about $3.60 to $3.75.