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

To: Howard Salwen who wrote (3473)	7/3/2002 8:35:48 AM
From: SPSEIFERT	Respond to of 3770

Tyco is giving guidance of $2.01-$2.o5 for 02 and $2.25 for 03. That gives me price targets of $20 at a p/e of 10 this year and somewhere between $30 and $40 for 2003. Looks good to me. Also their debt rating will improve dramatically. They also project free cash flow of 4.2-$4.5 Billion for next year. Is this a strong buy? I think so.

To: Howard Salwen who wrote (3473)	7/3/2002 2:42:28 PM
From: Tatnic	Read Replies (1) \| Respond to of 3770

Tyco to take $2.4 billion charge on sale of CIT By Tim McLaughlin BOSTON, July 3 (Reuters) - Tyco International Ltd. <TYC.N> delivered its final tally on Wednesday from the sale of CIT Group Inc. when the conglomerate said it would take a $2.4 billion charge in the June quarter related to that split off. The charge, which was larger than Wall Street expected, represents the difference between CIT's $6.8 billion carrying value on Tyco's books and the $4.4 billion Tyco received from selling its 100 percent stake in the financial services firm on Monday, Tyco spokesman Gary Holmes told Reuters. Tyco shares were down 37 cents or 2.91 percent to $12.34 in midday trade on the New York Stock exchange, after falling more than 8 percent earlier Wednesday. Tyco had hoped to realize between $5 billion to $5.8 billion from CIT's initial public offering on Monday, but the company had to settle for less in a brutal new issues market. Tyco's position was further weakened by Wall Street's knowledge that Tyco needed money to avert a cash crunch in February 2003. The CIT charge will be reflected in Tyco's earnings for the fiscal third quarter, ended June 30, Holmes said. This charge follows a $4.5 billion write-down Tyco took in the March quarter to reflect the impairment of CIT's goodwill. The impairment charge widened Tyco's March quarter net loss to $6.4 billion from $1.9 billion, according to Tyco's restated financial results. Tyco spent $9.5 billion to acquire CIT 13 months ago, but decided to sell the business when Wall Street stopped paying a premium for shares that soared during a decade-long acquisition binge under former company chairman Dennis Kozlowski. Kozlowski resigned last month just before he was indicted on tax evasion charges. Tyco said in a conference call with analysts and investors on Tuesday that, excluding charges and CIT's contribution to earnings, it expected to earn at least 44 cents a share in the June quarter, or a penny better than the consensus forecast. Tyco executives said during the call that the CIT initial public offering puts to rest any perception of a credit crunch at Tyco. Nevertheless, Tyco still needs to raise money, either through asset sales or refinancings, to refinance $1.5 billion in debt that comes due in late 2003. More than $90 billion in market capitalization has been erased at Tyco this year amid accounting worries, reduced profits and flip-flops in corporate strategy.