Scam Sniffing, Ball Busting Vigilantes Message Board

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Strategies & Market Trends : Scam Sniffing, Ball Busting Vigilantes

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To: Raymond Duray who wrote (223)	2/5/2002 5:02:21 PM
From: EL KABONG!!!	Read Replies (1) of 292

Ray, Hmmm... Just reading through all of the Tyco mess right now... A thought occurs to me... Let me set the stage... Herb Greenfield over at RealMoney revealed this past week that Tyco has some $4B in unaccounted for acquisitions... A day or two later the WSJ reveals that the number is something closer to $8B and there's somewhere near 700 or so acquisitions that were never publicly announced. Tyco responds that it's no big deal and not unusual, given that each of the 700 or so acquisitions, when looked at individually, represent a mere fraction of Tyco's net value, whether looked at from a market capitalization viewpoint or a book value perspective. A reasonable explanation? Okay, presuming of course that I am gullible enough to buy this statement as an acceptable explanation, then... Knowing that there are at least two parties to the transaction (Tyco as the buyer and the selling entity), why did the sellers choose not to make an announcement of the deals? Being a tad skeptical, one might reasonably question whether or not there was some sort of clause contained within the acquisition(s) that prevented either party from making a public disclosure of same. If so, why not disclose the acquisition(s) and at whose insistence were the deals not disclosed? If we were talking about only one or two deals here, I could easily write the whole thing off as a mere coincidence, or perhaps the sellers didn't want any disclosures. But 700 acquisitions? From a company domiciled offshore? From a company who within the past 12 months had its accounting practices under scrutiny? Hmmm... KJC

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