University may return tycoon's $4m donation

Cambridge University is considering returning a $4m (£2.6m) donation towards a professorship in corporate governance from Tyco International, whose chief executive, Dennis Kozlowski, faces criminal charges in America.

Cambridge said it had not come under pressure to return the money, but would "have to consider" what to do about the donation, which was made in 2000.

At the time Mr Kozlowski, who gave $2m of the total $4m donation from his own funds, was hailed as a business visionary. Since then he has become more famous for his extravagant lifestyle. He allegedly used Tyco money to pay for a treasure chest of luxuries, such as a $15,000 dog-shaped umbrella stand and a $6,000 shower curtain.

Mr Kozlowski could face criminal charges for allegedly looting Tyco's funds. A number of American law firms are preparing class actions on behalf of disgruntled shareholders. The lawyers might try to recover the donation made to Cambridge.

Tyco's donation was used by Cambridge's Judge Institute of Management Studies to support the £45,000-a-year Robert Monks chair in corporate governance. Mr Monks is one of America's most high-profile activists against corporate governance abuses. Professor Simon Deakin, an expert in labour relations, was appointed to the chair in 2001.

Cambridge said in a statement: "The entire amount of the endowment is, and has been, in the control of the university. Neither Tyco International nor Mr Kozlowski have had any influence on the appointment to the chair and on the programmes led by Professor Deakin."

Sir Paul Judge, the millionaire businessman who founded the Judge Institute, said the Tyco money was "received long before any of the problems were known about" and it was a "matter for Cambridge University" whether the donation would be returned.