Bankruptcy

Split-up Time for Tyco

''Deconstructing Tyco'' was proposed as long ago as 2002, but a massive accounting scandal helped to derail that effort.
Stephen TaubJanuary 18, 2007

Tyco International, which last year announced plans to split into three independent publicly traded companies, on Thursday filed registration statements for the individual equity securities.

The conglomerate also filed debt offerings for all three entities.

Tyco stated the separation is expected to occur early in the second quarter. It added that the split will be accomplished via tax-free stock dividends to Tyco shareholders, who will then own 100 percent of the equity in the three public companies.

The company’s fire and security division, as well as engineered products and services, will remain under the Tyco International umbrella. The other two stand-alone companies will be named Tyco Electronics, which will provide engineered electronic components, and Tyco Healthcare, which will develop, make, and sell medical devices and supplies, diagnostic imaging agents, pharmaceuticals, and other health-care products for use in clinical and home settings.

Deconstructing Tyco” was proposed as long ago as 2002, but a massive accounting scandal helped to derail that effort. The company now has a market capitalization of $62 billion, and it reported $41 billion in revenue for its September 2006 fiscal year, but Tyco’s share price is about half of its pre-scandal level.