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

To: JDN who wrote (1894)	3/24/2000 6:58:00 AM
From: John	Read Replies (2) \| Respond to of 3770

Tyco to Offer Second IPO (M/A Com) quote.bloomberg.com Lowell, Massachusetts, March 23 (Bloomberg) -- Tyco International Ltd. said it will file to sell about 20 percent of its wireless semiconductor unit, called M/A Com, as soon as shares in its undersea fiber-optic cable business starts trading. ``It is fully our intention on the heels of the TyCom IPO to do an IPO of M/A Com as quickly as we can,' Chief Executive Dennis Kozlowski told analysts following a tour of the Lowell, Massachusetts-based business today. Tyco this month filed to sell a 20 percent stake in its TyCom Ltd. unit. the world's biggest maker of undersea fiberoptic cable. Those shares are expected to begin trading in about 45 days. Now, Tyco will sell a similar stake in M/A Com in part because to keep pace with competitors who offer higher stock valuations to their employees, Kozlowski said. ``We really believe in this market, there's shareholder value that is locked up,' Kozlowski said. ``And secondly you almost need to do it because in order to motivate and strengthen management talent in an organization like this where you are driven by engineers, our competitors are doing IPOs.' M/A Com, founded in 1950, has annual revenue of about $565 million with businesses that compete in markets that are expected to rise to $10.5 billion by 2003 from $5.7 billion this year. About 74 percent of its products and services are sold to the telecommunications industry, with the rest to automotive, broadband telecommunications and aerospace industries. M/A Com wants to raise its 10 percent share of those markets to 15 percent by 2003, said Rick Hess, M/A Com vice president. The unit's capital needs are expected to be covered by proceeds from the IPO, Tyco said. The business provides wireless private networks used in public safety and transportation systems and the Open Sky communication system used with global positioning systems, such as in cars equipped with live electronic map services. It makes sensors, integrated semiconductors, components and microwave systems used in mobile phones and other devices. The company also makes silicon and as well as gallium arsenide semiconductors, which conduct five times faster than silicon. Kozlowski said the company is considering selling a 20 percent stake in its fiberoptic components business, which has about $420 million in annual revenue. Tyco expects to meet analysts estimates of 50 cents a share for its fiscal second quarter ending this month the average estimates from analysts polled by First Call/Thomson Financial, Kozlowski said. The company had $22.5 billion in sales in the fiscal year ended in September. Tyco's shares rose 7/8 to 49 3/8 today. The stock has climbed 35 percent in the past year. Tyco is also the world's biggest maker of electronic connectors, security and fire prevention systems, and industrial valves. It's run out of Exeter, New Hampshire, and based in Bermuda.