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Non-Tech : Tyco International Limited (TYC)

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To: Kal Perry who wrote (3705)1/14/2006 12:08:43 PM
From: deeno  Read Replies (1) of 3770
 
first nothing has been decided so this is all conjecture.

"Lets say I have 100 shares of TYC. After the break-up, I'll still have 100 shares of TYC?"

Maybe, maybe not. the percentages will be decided later. IF "TYCO" is deemed ADT and the "rest" is a stock free divdend then yes I beleive you would still have a hundred shares, but its as likely you'll have 172 ADT 74 medical and 116 electronics (all numbers made up)

If it is $30/share at breakup, would the post-breakup price of TYC be a fraction of $30/share ?

the 30 you quote is nothing more then what the market values the 3 pieces for. if you can figure that one out then you can make a lot of money. but yes its likley, TYC If it exists, will be a fraction of 30.

"And then I'll also have X shares of Company-A and X shares of Company-B. Probably less than 100 shares of each - right ?"

nobody knows and really what difference does it make?

"They said a tax-free stock dividend. So, the X shares of Company-A and Company-B have a tax basis of zero?"

I dont think so. likley to be a prospectus item that apportions your orginal basis of TYC into fractional pieces. ie. 39% for TYC, 51% for MED and 10% Electonics. (again all numbers made up)
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