Tyco and Bard Terminate Merger

As investor concerns continue to grow over its financial condition, Tyco International Ltd. (Pembroke, Bermuda) has announced that the agreement to acquire C.R. Bard Inc. (Murray Hill, NJ, USA) for US$3.2 billion has been mutually terminated by both parties. Each party will bear its own costs. Bard is a supplier of medical devices and surgical specialty products. Tyco also announced that its earnings would not meet previous forecasts.

Several weeks earlier, Tyco had announced its intention to split into four separate companies, in part to satisfy investors concerned about its cash position, accounting practices, and falling stock prices. So far this year, Tyco's stock has fallen by more than 50%. The company is now trying hard to sell or spin off its finance unit, the CIT Group, to restore confidence in that unit. Although no accounting irregularities have been brought to light, some investors fear that Tyco is manipulating the earnings of companies it acquires so as to inflate Tyco's earnings artificially. Tyco denies any improper accounting.




Related Links:
Bard
Tyco