Canaccord Genuity Morning Coffee on Tyco Int'l (TYC): Back on the Market
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Price: $45.59 --0%
Rating Summary:
9 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
9 Buy, 10 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Canaccord Genuity Morning Coffee on Tyco Int'l (NYSE: TYC): Back on the Market
Canaccord analyst said, "Diversified U.S. manufacturer Tyco International made headlines on Monday with news that it plans to split into three independent publicly traded companies. Investors cheered the move amid speculation that smaller chunks of Tyco would become acquisition targets. Tyco believes the separation of its three businesses: 1) ADT North America residential security, 2) Flow control products and services, and 3) Its fire and security business, will provide each segment more options for growth, both from within and through acquisitions. Analysts seem to agree. A Vertical Research Partners analyst said he believes the individual pieces could be attractive to a long list of acquirers and that "all three pieces as possible takeover candidates”. Specifically, he believes the ADT business could be attractive to AT&T (NYSE: T), Verizon (NYSE: VZ), Comcast (Nasdaq: CMCSA), Stanley Black & Decker (NYSE: SWK) or to a private equity buyer. Potential suitors for the commercial fire and security business include France's Schneider Electric, Germany's Siemens (NYSE: SI) and U.S.-based United Technologies (NYSE: UTX), Honeywell International (NYSE: HON) and Johnson Controls (NYSE: JCI). Lastly, the analyst speculates that United Tech or General Electric (NYSE: GE) could be interested in the valves business. Tyco expects to complete the transaction in approximately 12 months, with transaction costs at about $700 million, mainly for debt refinancing, separation and restructuring. Tyco is taking queues from several other companies such as Kraft Foods (NYSE: KFT) and Ralcorp Holdings (NYSE: RAH), McGraw-Hill (NYSE: MHP) and energy giant ConocoPhillips (NYSE: COP) have announced plans to split their business as conglomerates are falling out of favor with investors. Also, ITT Corp (NYSE: ITT) is planning to spin its defense and water segments into separate companies."
To see more ratings on TYC, Click Here
Canaccord analyst said, "Diversified U.S. manufacturer Tyco International made headlines on Monday with news that it plans to split into three independent publicly traded companies. Investors cheered the move amid speculation that smaller chunks of Tyco would become acquisition targets. Tyco believes the separation of its three businesses: 1) ADT North America residential security, 2) Flow control products and services, and 3) Its fire and security business, will provide each segment more options for growth, both from within and through acquisitions. Analysts seem to agree. A Vertical Research Partners analyst said he believes the individual pieces could be attractive to a long list of acquirers and that "all three pieces as possible takeover candidates”. Specifically, he believes the ADT business could be attractive to AT&T (NYSE: T), Verizon (NYSE: VZ), Comcast (Nasdaq: CMCSA), Stanley Black & Decker (NYSE: SWK) or to a private equity buyer. Potential suitors for the commercial fire and security business include France's Schneider Electric, Germany's Siemens (NYSE: SI) and U.S.-based United Technologies (NYSE: UTX), Honeywell International (NYSE: HON) and Johnson Controls (NYSE: JCI). Lastly, the analyst speculates that United Tech or General Electric (NYSE: GE) could be interested in the valves business. Tyco expects to complete the transaction in approximately 12 months, with transaction costs at about $700 million, mainly for debt refinancing, separation and restructuring. Tyco is taking queues from several other companies such as Kraft Foods (NYSE: KFT) and Ralcorp Holdings (NYSE: RAH), McGraw-Hill (NYSE: MHP) and energy giant ConocoPhillips (NYSE: COP) have announced plans to split their business as conglomerates are falling out of favor with investors. Also, ITT Corp (NYSE: ITT) is planning to spin its defense and water segments into separate companies."
To see more ratings on TYC, Click Here
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