In 2007, Tyco International spun off two companies consisting of Covidien - its healthcare division, and Tyco Electronics and now announces that it will further segment into two additional companies leaving shareholders concerned. The expected revenue and dividends for investors are said to be equivalent to existing numbers, but stock holders are not so sure.
Tyco plans to segment its ADT and Flow Control into individual business units. ADT provides security and fire protection equipment and monitoring services, while the flow control leg of the company provides valves and controls for manufacturers particularly in mining and water markets. Each business unit would be its own public company and traded as such after the proposed 12 month restructuring.
Though not alone in restructuring, Tyco is the largest corporation proposing such a drastic company change. Other companies including Kraft, McGraw Hill, and ConocoPhillips are also proposing such a business shift. Fears run wild among investors over the potential repercussions of these business changes.
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