Tyco plans to separate into three companies

On September 19th Tyco International Ltd announced that its Board of Directors has unanimously approved a plan to separate the company into three independent, publicly traded companies. The three companies created through the separation will consist of: the ADT North America residential security business, a North America-based provider of security for homes and small businesses; a provider of flow control products and services; and a commercial fire and security business.
The company intends to accomplish the separation by issuing tax-free stock dividends of the ADT and flow control businesses to Tyco shareholders, after which Tyco shareholders will own 100% of the equity in each of the three publicly traded companies. Tyco expects to complete the transaction in approximately 12 months, subject to certain conditions including the approval of Tyco shareholders. Upon completion of the transaction, it is contemplated that Breen will become non-executive chairman of the commercial fire and security company, a director of the flow control company, and a consultant to the ADT North America residential company. In addition, current Tyco directors are expected to serve on the boards of each of the three companies, including the roles of non-executive chairman of the flow control company and the ADT North America residential company.
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