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Non-Tech : Tyco International Limited (TYC) -- Ignore unavailable to you. Want to Upgrade?

To: Tecinvestor who wrote (1026)	12/11/1999 8:03:00 AM
From: JRI	Read Replies (1) \| Respond to of 3770

Unfortunately, I can not provide you with a link (I did research it extensively, though, yesterday), and my research mostly (but not fully) supports my broker's comments.....Yesterday's Wall Street Journal did state the following (page A 11): "After Mr. Tice issued his report, Tyco requested that the SEC take action against what it termed "malicious rumors". Mr. Tice soon afterward said he had been contacted by the agency. Some analysts yesterday said it was possible the SEC inquiry into Tyco was an outgrowth of that earlier probe". If they were investigating the rumors surrounding Tice, it would seem logical that (at some point) they would have to look at the (supposed) main point of Tice's commentary, the accounting for acquisitions/reserves Tice was criticizing. Also, (can not provide a link) the former West Coast head for the SEC enforcement division (now a private citizen) stated that it was not unusual at all ("almost expected") that Tyco would be looked into (by that division) given all the press Tyco was given back in October. (with no preassumption that there is actually something wrong)...So, if you're in the news, bogus or not, the SEC will find you apparently. So, either way, I feel pretty good that this is not the SEC "smelling a rat", but rather, procedural...and will lead to little or nothing (being an ex-auditor, I know there will be some pressure on whoever is investigating to find something...."raison d-etre"...the reason for an auditor's existence...so, given how nebulous accounting rules for acquisitions are...that the SEC could find something very minor..but that would be about it....) I wholly DO NOT EXPECT that they will find anything significant that will mean (to any large extent)...recast earnings, etc. Either way, little or no findings, the stock should pop nicely, and resume its upward path (it has a little catching up to do)..after this is resolved. Remember, the SEC's accounting division looked at TYCO 4 different times from 1997-1998, including up/thru the terms of the April 1999 AMP acquisition....and found nothing........Tyco is having 3 different accounting firms signs off on their 10-K next week, which would include the last two acquisitions (Raychem and Siemens unit)....and have already been "cleared" by their regular audit firm (I know, I know, that is not full-proof, but provides some comfort) . So, what is the likelihood that the SEC's enforcement division will find something significant? Not very, IMO. I mean, if there was something significant...would Tyco have been DUMB enough to run to the SEC about Tice's comments, knowing that that could lead to a further investigation of Tyco. I would think not. Good luck

To: Tecinvestor who wrote (1026)	12/11/1999 9:52:00 AM
From: Tom_	Read Replies (1) \| Respond to of 3770

Re: TYC requested the inquiry. Hi Tec! Yes, this has been published and was posted here on the thread. Message 12242483 It has been commented on in the media a lot since it first came out. In fact the San Jose Mercury News ran a story Friday on the first page of its business section headlined "Tyco stock plunges after it asks SEC to check its books." The story repeats the McGee quote: <<Tyco said it asked the SEC to look into the reports [Tice]. "Tyco did specifically request in October that the SEC look into the rumors surrounding our accounting," said Brad McGee, Tyco senior vice president. ... Analysts said that Tyco has taken a calculated gamble by raising the issue with the SEC, but a gamble that could pay off if the SEC gives its accounting a clean bill of health.>> Best wishes, Tom