Tyco Stock Drops More Than 20% After SEC Probe Announcement
Tyco Intl. shares were reported down more than 20 percent by CBS MarketWatch Thursday after the manufacturer revealed that its accounting methods are being examined by the Securities and Exchange Commission (SEC). After the announcement of what the company called a “nonpublic, informal inquiry,” Tyco shares plummeted 8 1/4 points, to 28, on volume of 115 million shares. At one point Thursday, the stock traded at 22 1/2, a new 52-week low. The SEC inquiry relates to charges and reserves taken in connection with the company’s acquisitions. As part of the inquiry announcement, L. Dennis Kozlowski, chairman and CEO of Tyco, said, “In light of recent market activity in our stock, which is not justified by any development at the company, we welcome the opportunity to respond to this request. We remain confident of our accounting methodology, our public disclosures and the continuing strength of our business.”
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