TyCom Slashes 600 Jobs
Oct. 19, 2001
EXETER, N.H. (AP) _ Tyco International Ltd. announced Friday it is buying the 11 percent of TyCom Ltd. it doesn't already own.
Under the agreement, TyCom shares would be converted into 0.3133 of a Tyco share, representing an increase over the conglomerate's initial offer earlier this month of 0.2997 for each TyCom share. The deal, which values TyCom shares at $15.42 _ a premium of 4.5 percent _ is based on Tyco's closing price Thursday of $49.20.
It also comes one day after TyCom, an undersea fiber-optic cable supplier, laid off 600 workers, representing about half of its work force in New Hampshire. TyCom, a subsidiary of Tyco, blamed the cuts on a slowdown in the telecommunications industry and the sluggish economy.
Tyco is based in Bermuda but operates from Exeter. It manufactures electronics, security systems and medical flow controls.
In August, Tyco said it had nearly completed cutting more than 11,000 jobs, about 5 percent of its worldwide work force.
Despite the cuts, the company has been an aggressive corporate buyer in the past few years. It recently bought Lucent Technologies' Power Systems business unit for $2.5 billion and medical products maker Mallinckrodt for $4 billion.
In afternoon trading on the New York Stock Exchange, shares of Tyco fell 67 cents to $48.56 and TyCom shares rose 34 cents to $15.10.
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