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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (78106)	6/12/2002 9:21:01 PM
From: Jdaasoc	Read Replies (1) \| Respond to of 99280

CIT bought for $10B I think the total value including debt was $14 B. So the difference is $4B in debt. Doesn't change the outlook for the company as being troubled. In addition, they bought several companies for $4B in 2002 which they havn't determined fair value for. So more goodwill writeoffs are definitely coming from TYCO Industrial. Tyco Capital is still on Tyco's books at $6.8 B so if they don't get $29 from IPO, they get to more boost goodwill writeoffs. from edgar-online.com "During the first six months of fiscal 2002, the Company purchased businesses for an aggregate cost of $4,402.0 million, consisting of $2,342.7 million in cash, net of $155.3 million of cash acquired, and the issuance of approximately 47.6 million common shares valued at $1,911.4 million, plus the fair value of stock options and pre-existing put option rights assumed of $147.9 million ($22.2 million of which put option rights have been paid in cash). Tyco also issued approximately 17.7 million common shares valued at $819.9 million in connection with its amalgamation with TyCom. Debt of acquired companies aggregated $775.7 million. During the six months, the Company paid $376.4 million of cash for purchase accounting liabilities related to current and prior years' acquisitions, which includes approximately $58.0 million relating to earn-out liabilities and purchase price adjustments on certain prior period acquisitions. The Company also issued shares valued at $2.3 million relating to earn-out liabilities. Certain acquisitions have provisions that would require Tyco to make additional "earn-out" payments to the sellers if the acquired company achieves certain milestones subsequent to its acquisition by Tyco. The cash portions of acquisition costs were funded utilizing net proceeds from the issuance of long-term debt. The results of operations of the acquired companies have been included in Tyco's consolidated results from their respective acquisition dates. In connection with fiscal 2002 acquisitions, the Company recorded purchase accounting liabilities of $182.2 million for transaction costs and the costs of integrating the acquired companies within Tyco's business segments" .... "Tyco has not yet finalized its business integration plans for recent acquisitions and, accordingly, purchase accounting liabilities are subject to revision in future quarters. As part of the finalization of business plans, the Company has engaged third-party valuation firms to independently appraise the fair value of certain assets acquired. Tyco is still in the process of obtaining independent valuations in order to finalize estimates for the fair values of assets acquired and liabilities assumed"