Monday, September 17 14:20:47
Tyco International shareholders have approved a breakup of the industrial conglomerate into three pieces, it said today, the second time since 2007 that the company has slimmed down.
Tyco has said the tax-free split would enable its three businesses - ADT North American residential security, flow-control products and services, and its fire and security business - to have more options for growth, both from within and through acquisitions. But its shares fell more than 3 percent.
For every 100 existing Tyco shares, stockholders will receive 100 new Tyco shares, 50 shares in the ADT business and 24 shares in the flow-control business, which sells valves and controls for the energy market.
The flow-control business will merge with Pentair Inc , which will be renamed Pentair Ltd and be majority-owned by current Tyco shareholders.
Tyco will combine its commercial fire and security businesses into "New Tyco," which will include the ADT brand outside North America and trade under Tyco's symbol.
The breakup will complete a decade-long transformation of a diversified conglomerate under Tyco Chief Executive Officer Ed Breen, who will step into nonexecutive advisory roles. He first broke up the company in 2007, then greatly expanded its security business with the $1.9 billion acquisition of Broadview Security in 2010.
In 2007, Tyco spun off its electronics division, now called TE Connectivity, and the healthcare company now named Covidien PLC. (C ) Reuters