The company also warned its first quarter and full-year 2006 earnings from continuing operations would be lower than expected. It estimated the cost of the breakup at $1 billion.
Tyco, which has its operational offices in West Windsor, NJ, said the breakup followed a strategic review and will strengthen the businesses. The breakup is expected to be completed in the first quarter of 2007. The $1 billion in anticipated costs are mainly for tax and debt refinancing, the company said.
"Our balance sheet and cash flows are strong and many legacy financial and legal issues have been resolved,"