The fund, which often seeks changes to strategy or corporate structure, believes that Honeywell should break apart into two companies, one serving the aerospace market and another

Honeywell's stock rallied as much as 7.8% into record territory for the first time in three years, after activist investor Elliott Investment Management disclosed a more than $5 billion stake, but then pulled back.

KEY TAKEAWAYS 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.