Tyco International, a Pembroke, Bermuda-based conglomerate, has abandoned its plan to split into four independently traded companies. The group, which manufactures everything from electronics to fire and security devices, holds a strong presence in the healthcare market with companies such as Kendall, U.S. Surgical, Sherwood, C.R. Bard, and Mallinckrodt in its portfolio.
In an open letter to shareholders, Tyco’s chief executive and chairman, Dennis Kozlowski, apologized for the strategy. "In retrospect, it is now clear that we took the market by surprise with our announcement, and failed adequately to take into account the extraordinarily fragile market psychology and hostile environment that has distracted and damaged our business in recent months," he said.
As part of the retrenchment, Kozlowski announced that Tyco’s CIT Group has filed for an initial public offering with the U.S. Securities and Exchange Commission. The conglomerate will sell all the shares it holds in CIT, a New York City-based commercial and consumer finance company with approximately $50 billion of assets under management.
The company also stated it would take a $3.3 billion charge during the quarter and will spend around $331 million to reduce headcount by 7,100 and close 24 facilities, primarily in its electronics and telecommunication operations.
By AuntMinnie.com staff writersApril 25, 2002
Related Reading
Mallinckrodt owner Tyco to split into four companies, January 23, 2002
Bard shareholders approve Tyco deal, August 8, 2001
Tyco to acquire C.R. Bard, May 30, 2001
Tyco completes Mallinckrodt purchase after agreeing to settle antitrust issues, October 18, 2000
Tyco announces deal to acquire Mallinckrodt, June 28, 2000
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