Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: White Bear who wrote (2879)	2/9/2002 11:29:56 PM
From: Terrapin	Respond to of 3770

True, it would be unlikely that a bank would approve of a company using a credit line to repurchase debt (commercial paper, bonds, whatever). It is not what a company typically uses it for. But these are not typical circumstances. A very nervous bond market allowed themselves to be scared away from this company by over-heated rhetoric. This raised the cost of capital for Tyco to the point where they were forced to draw from the credit lines to protect themselves. Having done this they have assured themselves the liquidity to run the company as they see fit. Ironically, this appears to have reassured the bond market so that soon they will be just as willing as before. As I have said before, the only thing that I have seen that I consider "questionable" (and certainly not illegal) is the payment to Walsh for assisting with the merger. Steps have been taken to prevent this questionable action from happening again. Everything else that people are talking about: stock price action, volatile bond yields, credit downgrades, use of credit lines; flow from a single source. That source is the unsubstantiated claim of false accounting. Guess what: it has been three weeks and they haven't turned up anything. All they can talk about now is the effect that they caused. The effect that would not have been there had they remained silent. Terrapin

To: White Bear who wrote (2879)	2/10/2002 4:44:17 PM
From: SPSEIFERT	Respond to of 3770

I am not understanding why the fact your family is in banking and they are pissed has any bearing on whether Tyc's action is not in the best interest of the TYC shareholders. I am not aware that Kozlowski has to keep bankers happy if it is not in the shareholders best interest. Can you expand on why the bankers are upset? Your answer still leaves me cold about why you are an expert in this area and what specifically the bankers don't like. I am not trying to pick a fight but I am also puzzled by why undocumented opinions should carry any weight.