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 Green village to be bulldozed and mined for lignite in Germany's quest for non-nuclear fuel
- 2 HeForShe campaign: Iceland to follow up Emma Watson speech with UN women's rights conference – for men only
- 3 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 4 Teenagers irritable because early school hours mess with their biological clocks
- 5 Now we know whose fault it is if you end up being murdered in Thailand
Isis could become 'world’s first truly terrorist state' and bomb UK with nuclear and chemical weapons, Theresa May warns
Car tax disc changes: Five facts you never knew about your (almost obsolete) tax disc
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
The Aral Sea: Nasa pictures show how what was once the fourth largest lake in the world has become almost completely dry
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Should gay sex be illegal? 16% of Britons think so
Mark Reckless becomes second Tory MP to defect to Ukip in a month
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...