Diversified manufacturer Tyco International Ltd. (
) announced Wednesday it would break off its flow control products
unit and merge that unit with fellow flow control specialist
Pentair Inc. (
The deal values Tyco Flow at $4.53 billion. Tyco Internation
will own 52.5% of the newly-combined company, while Pentair
investors will own the rest. The transaction is expected to be
tax-free to investors of both companies.
This move comes as part of
Tyco's September announcement
that it planned to split its company up into three pieces.
Tyco shares jumped $1.62, or +3%, in premarket trading
The Bottom Line
Shares of Tyco International (
) have a 2.54% dividend yield, based on last night's closing stock
price of $53.53. The stock has technical support in the $50 price
area. If the shares can firm up, we see overhead resistance around
the $60 price level.
Tyco International Ltd. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
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, as well as a detailed explanation of
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