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

To: Nick who wrote (1950)	4/11/2000 7:37:00 PM
From: Mang Cheng	Read Replies (2) \| Respond to of 3770

"Tyco: The Road Back" Busniness Week - April 10, 2000 issue Tyco International Chairman Dennis Kozlowski aims to get back in investors' good books. The stock took a beating after allegations that Tyco (TYC) engaged in accounting irregularities in its acquisitions, which Kozlowski denies. The Securities & Exchange Commission is looking into the charges. The stock, which had been in the mid-60s, closed at 28 1/4 on Dec. 9. It has since rallied, to 49 7/8 on Mar. 29. What's Kozlowski's strategy? He has shifted gears, stressing Tyco's New Economy operations. Conglomerate Tyco is in health care, valves, fire protection, and security. Tyco also makes plenty of high-tech products: undersea fiber-optic cable and wireless telecom and electro-optic connection devices. But the market hasn't recognized their true worth. So Kozlowski is taking two of Tyco's high-tech units public. Tyco has filed to sell 20% of TyCom, which is No. 1 in undersea fiber-optic cable. The IPO will sell $1 billion of stock. Kozlowski says he also plans to take public M/A-COM, whose products are sold to the broadband telecom, automotive, and aerospace industries. Kozlowski, who has bought companies worth $30 billion over just three years, intends to forge ahead with acquisitions: He expects to tie up two deals this year--in the electronics and technology sectors, to complement Tyco's fiber-optics and telecom operations. Tyco's stock soared eightfold in the five years ended Sept. 30, 1999--prior to claims of questionable accounting. Analyst Phua Young of Merrill Lynch, who rates the stock a long-term buy, says Tyco's move to associate itself with the New Economy, plus its strong fundamentals, should drive the stock higher. His 12-month target: 95, or 35 times his 2001 estimate of $2.70 a share. In 2000, he sees earnings of $2.13. By GENE G. MARCIAL businessweek.com Mang