(Reuters) -Honeywell International ( HON ) said on Monday its board is considering a potential separation of the aerospace business as it continues to review its business portfolio, sending the conglomerate's shares up nearly 3% in premarket trading.

Since taking charge last year, Honeywell's ( HON ) top boss Vimal Kapur has looked to align the company's portfolio with the so-called megatrends of automation, aviation and energy transition.

The board has made significant progress to date and the company plans to provide an update when it reports its fourth-quarter results, it said on Monday.

The review comes after activist investor activist Elliott Investment Management called for a split of Honeywell's ( HON ) aerospace and automation businesses after taking a more than $5 billion stake in the company in November.

"We believe the portfolio transformation Vimal and his team are leading represents the right course for Honeywell ( HON )," Elliott said in a statement on Monday.

Honeywell ( HON ) had also disclosed in November that it would sell its personal protective equipment business to Protective Industrial Products for about $1.33 billion in cash.

The conglomerate has also bought Carrier's security business for $4.95 billion and acquired aerospace and defense firm CAES Systems for $1.9 billion as part of its wider shift.