Williams shares plunge as Tyco takeover talks fail
Wednesday 14 July 1999
"Whilst there is clear industrial logic in putting the two businesses together, it has become evident that some regulatory uncertainty and limited prospects for immediate large-scale cost savings have undermined the ability of Tyco to achieve its target returns," Williams said.
The stock fell 60p to 356p - just below the level where Williams traded prior to announcing the latest talks on 7 June. The first set of talks failed last autumn. City sources said the talks foundered when Tyco realised that the price needed to secure the approval of the Williams board would have led to a dilution of the US company's price-earnings rating of 40 times historic net profit. Tyco stock has doubled during the past year amid an acquisition binge.
Williams executives had been seeking around 500p per share, valuing the company at pounds 3.65bn. That would have been a 28 percent premium to the stock's price before news of the latest talks surfaced.
Tyco, based in Bermuda but run from New Hampshire, is a conglomerate with holdings in disposable medical products, electrical components and other fields. With the two firms already the biggest fire and security companies worldwide, the sources also said a deal would have faced regulatory problems.
Williams, meanwhile, pledged to return to the acquisition trail if necessary to boost the double-digit annual sales growth of its service businesses.
- 1 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 2 Mystery man who gave mum heart-warming note on train 'wanted to put a smile on her face'
- 3 Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
- 4 Mafia's wall of silence broken: Victim of Cosa Nostra's extortion rackets in its Corleone heartland co-operates with authorities for the first time ever
- 5 Amal Clooney gives excellent answer to fashion question at European Court of Human Rights
Mystery man who gave mum heart-warming note on train 'wanted to put a smile on her face'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Mafia's wall of silence broken: Victim of Cosa Nostra's extortion rackets in its Corleone heartland co-operates with authorities for the first time ever
Amal Clooney gives excellent answer to fashion question at European Court of Human Rights
Sir David Attenborough interview: The one question about life that still baffles him
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
Louise Mensch says 'F**K YOU' in explosive tweets about David Cameron, Saudi Embassy and the Queen over King Abdullah tributes
iJobs Money & Business
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...
£16500 - £16640 per annum: Recruitment Genius: This fast growing Finance compa...