Tyco is a
conglomerate with over $22.0 billion in annual sales that designs,
manufactures and sells a wide range of products. These include
disposable medical supplies, electronic security and electrical
components, flow control products, and fire suppression and
detection equipment. The company is known for acquiring other firms
that are compatible with its business and has recently purchased
United States Surgical and AMP, Inc.
It seems that the companies that Tyco recently acquired
wrote off assets during the final quarter they were acquired,
allegedly for the purpose of showing stronger growth in future
quarters. Tice’s comments and a follow-up article in the New
York Times were enough to send Tyco’s stock below the
$40-per-share level. Mr. Dennis Kozlowski, the chairman and CEO of
Tyco, has since appeared on CNBC and stated emphatically that there
are no improprieties in Tyco’s accounting practices, but that did
not stop the slide of Tyco’s share price.
