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UK's Chubb agrees in principle to UTC bid-source
The board of Chubb, the world's third-largest security services firm, met on Tuesday to consider the offer of around 75 pence per share from the maker of Pratt & Whitney aircraft engines and Sikorsky helicopters.
United Technologies' board was due to meet on Wednesday and an announcement of the deal could come later in the day or early on Thursday, the New York Times reported.
No-one at United Technologies was immediately available for comment.
A spokesman for Chubb, which supplies electronic security and fire prevention systems as well as security guards and monitoring devices, declined to comment.
Chubb shares stood 3.6 percent higher at 71-3/4 pence by 0835 GMT, valuing the group at around 600 pounds ($997).
They have gained 4.6 percent since it revealed a bid approach in April, after an initial stock surge after the news was dampened by a profit warning days later.
Analysts have said a deal at 75 pence would be disappointing, but noted that April's profit warning had cut Chubb's value.
A week after revealing a bid approach, the 200-year-old firm said full-year profits would be well below target owing to the economic impact of the SARS virus in Asia and a steep drop in spending on hotel refurbishments in the United States.
Speculation has focused all along on United Technologies, which produces Carrier air conditioners and Otis elevators. Industry sources say the company is keen to acquire a new business line that Chubb could offer. (additional reporting by Daniel Sorid in New York)