Conglomerate Tyco International is planning to split into four independent, publicly traded companies in a bid to increase shareholder value. The units: security and electronics: healthcare; fire protection and flow control; and financial services.
The Pembroke, Bermuda-based firm plans to complete initial public offerings for all of its businesses by the end of this year. Tyco Healthcare president Rich Meelia will serve as president and CEO of the healthcare unit, which includes Tyco's Mallinckrodt business. Chuck Dockendorff will stay on in his position as CFO.
Investors reacted negatively to the restructuring announcement, bidding Tyco's stock down approximately 6% in early afternoon trading Wednesday. The news may also impact Tyco's planned purchase of interventional firm C.R. Bard, whose shares dipped over 5% in Wednesday trading. Bard chairman and CEO William Longfield said today that Bard is reviewing the impact of Tyco's announcement on their proposed merger, and that the two companies are in discussions.
By AuntMinnie.com staff writersJanuary 23, 2002
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