Scrutinizing the Tyco Split
Tyco (TYC) has formally announced shareholder approval to spin off its security and flow control units at the end of September. The flow control unit will be merging with Pentair (PNR). Meanwhile -- despite private equity and take-over murmurings -- the ADT security unit intends to remain an independent, publicly traded company.
Shares of the conglomerate are at their highest levels since the early 2000s, and are up 25% since a year ago. A week and a half before the anticipated Sept. 28 distribution -- the second such split in five years -- the company sports market capitalization of $26 billion. In June 2007, Tyco completed a much-anticipated move and spun off Covidien (COV) and Tyco Electronics, now known as TE Connectivity (TEL). Since Covidien's 2009 lows, the company has kept pace with the broad market, but TE Connectivity is up nearly 300%....512 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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