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.

Activist investor Elliott Investment Management said Honeywell should split into two separate businesses on Tuesday, following in the footsteps of other industrial conglomerates that have broken up in recent years.

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

Activist investor Elliott Investment Management stated in a letter addressed to Honeywell’s Board of Directors that it wants Honeywell International Inc. to spin-off its Aerospace Technologies business.

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.

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

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.

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.