Tyco shareholders OK separation into 3 companies

Associated Press

NEW YORK (AP) — Tyco's shareholders have approved its separation into three publicly traded companies.

The company expects to complete its split into ADT North America residential security business and separate companies for flow control products and commercial fire and security on Sept. 28.

Tyco said in March that it would combine its flow control business with those of Pentair Inc. in an all-stock deal worth about $4.53 billion, uniting two of the biggest players in water and fluid products systems. The combined business will be known as Tyco Flow Control International Ltd.

The Swiss manufacturer also cut the fiscal fourth-quarter revenue forecast for its fire and security unit, citing difficulties in collecting some receivables. Tyco says it anticipates taking a charge of $40 million to $60 million to increase its reserves for the receivables, which are related to security contracts in China that may not be collectible.

The company now anticipates revenue for the fire and security segment of about $2.75 billion, down from its prior guidance of $3 billion.

Shares of Tyco International Ltd. added 5 cents to $55.29 in morning trading on Monday.

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