Probably. Spokesman McGee definitely believes time is on Tyco's side. "By 2003 we will have completed the separation plan and restructured our debt," he insists. "We don't see liquidity as a problem going forward." And Tyco managers continue to insist that the company isn't under any real financial distress. Instead, they claim, the conglomerate is simply suffering from a general erosion of investor confidence.
Such a distinction may be lost on shareholders, however. Since the announcement of the break-up plan, the share price of Tyco common has plummeted almost 38 percent. The wicked free-fall has cost shareholders some $70 billion. That's a harsh accounting, by any standard.
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Epilogue:
On June 1, Dennis Kozlowski resigned as chairman and CEO of Tyco International. Reportedly, Kozlowski is under criminal investigation by Manhattan District Attorney's office. The reason for the inquiry? Allegedly, Kozlowski moved hundreds of million of dollars into family trusts and then used those trusts to buy goods and services -- without paying New York state sales tax.
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