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To: Jim Willie CB who wrote (47198)	1/29/2002 3:52:44 PM
From: stockman_scott	Respond to of 65232

Tyco chairman defends $20 Million payment to director 29 Jan 2002, 3:30pm ET PEMBROKE, Bermuda, Jan 29 (Reuters) - The chairman of Tyco International Ltd., whose shares have been hammered all month by skeptical investors, on Tuesday defended a $20 million payment to an outside director for securing a large acquisition last year. Tyco (NYSE:TYC) disclosed on Monday it paid director Frank Walsh a $10 million cash fee for his services in Tyco's nearly $10 billion acquisition of CIT Financial Inc. In addition, at Walsh's request, Tyco paid $10 million to a charitable fund of which Walsh is a trustee. Walsh owned 50,000 shares of CIT at the time of the acquisition. Tyco paid a 74 percent premium for CIT stock. "The board felt that fee was appropriate in light of Mr. Walsh's efforts," Tyco Chairman Dennis Kozlowski said in a statement. "Clearly we are in an environment where people are intensely skeptical of corporate America, and for that matter, of Tyco...obviously, we believe the reaction in our stock price is unjustified." Tyco shares sank $8.25, or 19.64 percent, to $33.75 in late-afternoon trade on the New York Stock Exchange. Kozlowski's said Tyco's plan to split the conglomerate into four separate companies is moving forward in "high gear." Copyright 2002, Reuters News Service