cbs.marketwatch.com
Tyco falls on new accounting doubts
By Deborah Adamson, CBS MarketWatch
Last Update: 5:44 PM ET Oct 29, 1999
HAMILTON, Bermuda (CBS.MW) -- Shares of Tyco International dropped by 9 percent on Friday as the company was stung by more reports questioning the company's accounting practices.
An article in the New York Times raised questions about big losses taken at companies Tyco was acquiring immediately before the deals closed.
The story singled out Tyco's purchase of AMP Inc. and U.S. Surgical.
The losses, $190 million in U.S. Surgical's case, were "never reported to investors" and by the time the reports would have been due, the transactions had closed, the article said.
The approach helps to make Tyco's management look better because future quarters look rosy in comparison, according to the report.
The New York Times said it first got the tip from Kynikos Associates, which is shorting Tyco.
Tyco denied the charges. In a letter from Mark Swartz, chief financial officer, released during the day, Tyco said the losses were disclosed in Securities and Exchange Commission filings. Tyco also gave analysts and shareholders additional details about these losses as requested, Swartz said.
"Tyco's accounting adheres to the letter and spirit of GAAP accounting and SEC disclosure rules," he wrote.
Earlier this month, Tyco shares took a dive after a newsletter accused the company of accounting manipulation by setting up big reserves when it makes acquisitions.
Some analysts have supported Tyco's position.
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cbs.marketwatch.com
Dec 9, 1999
In a statement, the diversified manufacturing and service company said it was advised Wednesday that SEC is conducting a "nonpublic, informal inquiry" relating to charges and reserves taken in connection with the company's acquisitions.
Tyco denied any wrongdoing and said it will provide documents and information to the agency on a voluntary basis. Securities lawyers said an informal probe should have come as no surprise given the media attention paid to the company's accounting practices. And analysts largely stood by the company.
...
In the October newsletter story, David Tice, manager of the Prudent Bear Fund, first questioned the large charges taken by Tyco during its acquisitions. Tice said that in some instances the company set aside excessive reserves for costs related to severance pay and plant closures, indicating concerns the reserves could be used later to boost profits.
The subsequent New York Times article raised questions about big losses taken at companies Tyco was acquiring immediately before the deals closed, singling out the acquisitions of AMP Inc. and U.S. Surgical.
Tyco adamantly denied any irregularities at the time of the reports and several Wall Street analysts rushed to the company's defense.
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cbs.marketwatch.com
IDT seeks $4B default judgment against Tyco
Firm accused of backing out of joint contract
By William L. Watts, CBS MarketWatch
Last Update: 3:34 PM ET Mar 3, 2000
NEWARK, N.J. (CBS.MW) -- International telecom carrier IDT Corp. is seeking a potentially multi-billion dollar default judgment against Tyco International, contending the firm failed to respond to a civil complaint seeking damages for alleged breach of contract.
The filing in federal court in Newark, N.J., said Tyco failed to respond to IDT's summons and complaint by a Feb. 28 deadline. IDT initially filed suit last month, contending Tyco backed out of an agreement to jointly build an undersea fiber-optic cable network. Tyco announced earlier this year that it would build its own undersea network to be called TyCom Global Network.
The lawsuit seeks at least $4 billion in compensatory and punitive damages.
An IDT spokesman declined comment, citing company policy not to discuss litigation.
A Tyco official referred calls to a company spokeswoman, who didn't immediately return a phone call seeking comment. Tyco has previously described the IDT lawsuit as without merit.
IDT's complaint contends that the companies inked a binding memorandum of understanding in November to build an undersea fiber-optic cable network to be called "Lighthouse." The complaint argued that IDT performed its obligations in good faith but that Tyco "wrongfully refused to accept IDT's performance, and breached other ... obligations under the (memorandum of understanding)."
On Jan. 17, Tyco announced it would design, build, operate and maintain the TyCom Global Network. "In other words, Tyco now plans to build Lighthouse, or the equivalent thereof, with IDT's participation," the lawsuit said.
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cbs.marketwatch.com
Tyco unit files for $1 billion IPO
TyCom fiber optic unit nets growing revenue, profit
By Steve Gelsi, CBS MarketWatch
Last Update: 7:46 PM ET Mar 10, 2000
NEW YORK (CBS.MW) -- Industrial giant Tyco has filed for a $1 billion initial public offering for its TyCom fiber optic unit.
The Pembroke, Bermuda-based subsidiary of Tyco (TYC: news, msgs) bills itself as the world's leading independent, integrated, supplier of undersea fiber optic networks and services.
TyCom (TCM: news, msgs) said it's designed engineered, manufactured and installed more than 350,000 kilometers of undersea cable, more than any other supplier.
marketwatch.newsalert.com
CBSM
01/18 11:32
[TYC] TYCO FACES SUIT ALLEGING MISREPRESENTATION OF COMPANY'S FINANCIAL
CONDITION
marketwatch.newsalert.com
CBSM
12/30 06:48
[TYC] STULL, STULL & BRODY ANNOUNCE CLASS ACTION LAWSUIT AGAINST TYCO
INTERNATIONAL LTD.
CBSM
12/29 14:08
[TYC] KELLER ROHRBACK FILES CLASS ACTION SUIT AGAINST TYCO FOR ALLEGED IMPROPER
ACCOUNTING.
CBSM
12/15 10:48
[TYC] TYCO FACES SUIT ALLEGING CO., CERTAIN OFFICERS ISSUED MISLEADING
STATEMENTS.
marketwatch.newsalert.com
CBSM
12/10 12:09
[TYC] MILBERG WEISS FILES CLASS-ACTION SHAREHOLDER SUIT AGAINST TYCO
INTERNATIONAL. |
