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Non-Tech : Tyco International Limited (TYC)

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From: nnillionaire	1/14/2006 10:26:19 AM
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My question regarding the Tyco breakup is why is it going to cost $1 bil? The businesses exist, the assets are in place, the businesses are staffed, and there are no start-up costs like for a new company. There will be legal expenses for the split of TYC into three separate entities, but those will be nowhere near $1 bil. So, what is going to cost shareholders $1 bil? I certainly hope it is not management incentive payments to assure smooth execution of the split, nor golden handshakes for executives leaving Tyco for the three new entities. Ethics may questioned, again. Shades of Koz. Any insight into why the split is going to cost $1 billion would be appreciated.

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