Shares of the conglomerate Tyco International Ltd. rose more than 4 percent Monday after a published report said the company was considering splitting itself into three separate entities.
Tyco shares rose $1.25, or 4.2 percent, to $31.23 in afternoon trading on the New York Stock Exchange. Its shares have traded in a 52-week range of $25.66 to $36.58.
Citing unnamed sources familiar with the plan, The Wall Street Journal reported Monday that the Tyco board would meet this week to consider whether to spin off its electronics and its health care businesses as separate companies in tax-free transactions. Tyco CEO Edward Breen would continue to run remaining operations which include security, fire-protection and pump and valve businesses under that plan, the newspaper said.
Tyco may be best known for ADT home-alarm systems and equipment used for fighting forest fires.
The Journal said a board meeting is planned for later this week in Bermuda, where it is officially based.
A Tyco spokeswoman at the company's operational offices in West Windsor, N.J., declined comment Monday.
Tyco has been recovering from accounting scandals. Last year, Tyco's former chief executive, L. Dennis Kozlowski, and former chief financial officer, Mark H. Swartz, were sentenced to prison for grand larceny, conspiracy, securities fraud and falsifying business records. They are accused of conspiring to defraud Tyco of millions of dollars to fund lavish lifestyles. Both are appealing their convictions.
The company considered a breakup four years ago, but abandoned the idea.
In a conference call with analysts in November, Breen said the firm was considering a range of options to improve the stock's value, including splitting up the company.
On the Net:
Tyco International Ltd.: http://www.tyco.com