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.
Sales of the tablet are set to fall again, say analysts
World's most lethal spider found under a bunch of bananas
I Am Bread could actually be a challenging and nuanced title
Company decides to go for simply scary after criticising other sites for 'creepy and targeted' advertising
Footage shot by a passerby shows moment an ill man was carried out of his burning home
Peter Biaksangzuala died from his injuries in hospital on Sunday
- 1 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 2 Ebola outbreak: What is bushmeat – and is it to blame for the disease that has killed thousands?
- 3 Star Wars memorabilia called a 'bit of plastic' on Antiques Roadshow by Fiona Bruce valued at £50,000
- 4 Meet Thea, Norway's 12-year-old child bride
- 5 Russell Brand might seem like a sexy revolutionary worth getting behind, but he will only fail his fans
Kobani: Fifteen-year-old boy taken captive with suspected jihadist 'shot in the head by militant group' fighting against Isis
Ebola outbreak: What is bushmeat – and is it to blame for the disease that has killed thousands?
Isis fighters 'crucify' 17-year-old boy in Syria
Oscar Pistorius sentencing: Olympic star must serve 10 years, prosecutor urges
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Sorry Judy Finnigan – Ched Evans is no less sickening than an alleyway rapist
Residents should throw a street party and mix with immigrant neighbours, councils told
Workers 'could be forced to pay £5 a week' to get benefits
Russell Brand threatened with arrest after filming outside Fox News headquarters
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
iJobs Money & Business
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...