Tyco Healthcare
This article was originally published in The Gray Sheet
Executive Summary
Tyco unit "is driven by consumables, which makes it extremely stable regardless of the economic environment," CEO Dennis Kozlowski says in April 25 letter to shareholders announcing that the conglomerate has terminated plans to break up the company. Tyco originally announced its intention to split into four separate companies - Healthcare, Security and Electronics, Fire Protection and Flow Control, and Financial Services - in order to increase the value of the firms' stock price and provide increased visibility to investors (1"The Gray Sheet" Jan. 28, 2002, p. 3). Wall Street reacted negatively to the plan, however; the company's stock price has dropped from $45 prior to the announced break-up plan to the $20-range...