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Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: TechMkt who wrote (6475)	6/12/2000 9:27:00 PM
From: matt dillabough	Read Replies (1) \| Respond to of 15615

DJ Tyco Will Respond 'Shortly' To Global Crossing Suit >TYC Dow Jones News Service ~ June 12, 2000 ~ 5:09 pm EST NEW YORK (Dow Jones)--When Global Crossing Ltd. (GBLX) sued Tyco International Inc. (TYC) last month alleging fraud and theft of trade secrets, Tyco said it would defend itself vigorously. Tyco has officially taken the first steps to do just that. As expected, Tycom Ltd., Tyco's undersea fiber-optic telecommunications unit, said in an S-1 filing with the Securities and Exchange Commission that it will file "an answer and counterclaim" to Global Crossing's suit "shortly" and " pursue all appropriate remedies." A Tyco spokesperson declined to comment on the timing of Tyco's countersuit. Global Crossing filed a suit against Tyco Submarine Systems Ltd., a wholly owned subsidiary of Tycom, on May 22, seeking damages of more than $1 billion. In its lawsuit, Global Crossing accused Tyco Submarine of trade secret theft and breach of contract regarding an undersea fiber-optic network around South America. Global Crossing is Tycom's largest undersea-cable customer. In the filing, the company said Tyco has agreed to indemnify Tyco Submarine with respect to losses and expenses resulting from the Global Crossing suit. According to some market sources, speculation that Tyco was slow in posting its response to the Global Crossing suit through this filing with the SEC weighed on the stock last week. Tyco closed Monday off 5/8, or 1.4%, at 45 5/8 on composite volume of 4 million shares, compared with average daily volume of about 7.5 million. An analyst said he doesn't know why Tyco was off Monday. In the filing, Tycom said it is offering 43.5 million shares to the public in its initial public offering at prices between $26 and $30 a share. It expects net proceeds of $1.75 billion from its initial public offering, assuming $28 a share. All of the proceeds will go toward the cost of deploying the first phase of the TyCom Global Network. Tyco would own 90% of Tycom after the offering. -By Christopher C. Williams; Dow Jones Newswires; 201-938-5219; christopher.williams@dowjones.com (END) DOW JONES NEWS 06-12-00 05:09 PM