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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: j g cordes who wrote (36073)	2/4/2002 11:37:09 AM
From: Johnny Canuck	Respond to of 69853

2. INVESTORS LOSING FAITH IN TYCO Shares of conglomerate Tyco International sank to a fresh two-year lows this week as investor disappointment with the company’s breakup plan was exacerbated by revelations that it paid an outside director $20 million to help broker last year’s $9.5 billion acquisition of CIT Financial. The company, now called Tyco Financial, is slated to be the first unit spun off in the company’s breakup plan, which Tyco’s management revealed in a surprise announcement last week. Tyco’s share slide has also been fueled by news that the breakup has prompted medical device maker C.R. Bard to reassess its $2.6 billion acquisition by Tyco. TODD’S TAKE: As this story develops, Tyco’s breakup plan is looking worse and worse. The firm’s stated purpose is to unlock value in its stock, reduce its structural complexity and reduce debt. But the line about “unlocking value” seems like a pretty quick about-face, especially when you consider that we’re still in a down market and Tyco is still making acquisitions. Investors are suspicious, and as such they’re looking closely at Tyco’s books. And with the Enron and Kmart debacles fresh in everyone’s mind, this is a bad time to have analysts find highly questionable payments to board members. If the heightened attention on Tyco leads to the discovery of any accounting irregularities, then this situation could grow much worse. We recommend staying well away from Tyco for the time being.

To: j g cordes who wrote (36073)	2/4/2002 9:09:14 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69853

Some stock are approaching the levels we saw at the end of September. Given that was a sell at all cost situation, we are at least starting to see value appear again. As a indication of this, the LTD offer to by back the IBI shares it spun out might be a trend if the current market conditions persist. ********************** Monday February 4, 5:59 pm Eastern Time Limited Offers to Buy Back Intimate Brands COLUMBUS, Ohio (Reuters) - Retailer The Limited (NYSE:LTD - news) said on Monday it was starting an exchange offer to regain full control of its subsidiary, Intimate Brands Inc. (NYSE:IBI - news), the owner of Victoria's Secret brands. The company said it will make an exchange offer by which it would acquire all the outstanding publicly held common shares of its 84 percent-owned subsidiary. The exchange offer will commence on Feb. 5, and is scheduled to expire on March 11. All public IBI shareholders will be offered 1.046 shares of Limited common stock in a tax-free exchange for each outstanding share of Intimate Brands Class A common stock. Based on Monday's New York Stock Exchange closing prices of $17.50 per share for Intimate Brands Class A common stock and $17.75 for Limited common stock, the offer represents a value of approximately $18.57 per Class A share of Intimate Brands -- or a 6.1 percent premium. The 1.046 exchange ratio represents an 8.8 percent premium to the 0.962 average ratio of Intimate Brands and Limited closing stock prices over the past year. It also represents a 6.3 percent premium to the 0.984 average ratio of Intimate Brands and Limited closing stock prices through the past six months.