Tyco International Ltd., which spun off two business units earlier this year, has received its board’s approval to buy up to $1 billion of its common stock. It also received approval to increase its quarterly dividend to 15 cents per share for the first quarter of fiscal year 2008.
The company had previously predicted that it would be pay an 11-cent dividend after it split into three companies. The conglomerate broke out its health-care and electronics businesses in June following years of massive growth and the high-profile conviction of former CEO Dennis Kozlowski and CFO Mark Swartz for stealing and securities fraud.
Tyco will make repurchase offers from time to time depending on market conditions, the company said on Thursday. “The increase in our quarterly dividend and the initiation of a new share repurchase program reflect the strength of our cash flow and our confidence in Tyco’s future,” said Tyco Chairman and Chief Executive Officer Ed Breen. “With the separation behind us, this is the appropriate time for us to make these moves.”