Tyco Buys Back TyCom

Purchase of minority shares brings TyCom back into the Tyco corporate structure as a wholly owned subsidiary

October 19, 2001

1 Min Read

PEMBROKE, Bermuda -- Tyco International Ltd. (NYSE: TYC; LSE: TYI; BSX: TYC) and TyCom Ltd. (NYSE: TCM; BSX: TCM) announced today that they have executed a definitive agreement whereby a subsidiary of Tyco and TyCom will amalgamate and each outstanding common share of TyCom not owned by Tyco will be converted into the right to receive 0.3133 of a Tyco common share, an increase from the previously announced offer of 0.2997 exchange ratio. Based on the closing price on the New York Stock Exchange of a Tyco common share on October 18, 2001, this represents a value of $15.42 per TyCom common share. Upon completion of the amalgamation, Tyco will have acquired the outstanding 11% minority interest in TyCom representing approximately 56 million common shares. Tyco currently holds 89% of all TyCom common shares and acquiring the outstanding minority shares would bring TyCom back into the Tyco International Ltd. corporate structure as a wholly owned subsidiary. Tyco International Ltd. Chairman, President and Chief Executive Officer, L. Dennis Kozlowski stated: "The transaction will provide Tyco with cost saving opportunities through a reduction in general and administrative costs and greater flexibility in allocating resources to TyCom. As we have previously stated, Tyco remains committed to TyCom even though the environment for broadband telecommunication stocks has changed dramatically since the time of the initial public offering of TyCom." Tyco International Ltd. TyCom Ltd.

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