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Tyco ‘saves’ AMP for $11.3 billion

Hamilton, Bermuda, and Harrisburg, Pa.— In a classic white knight-to-the-rescue scenario, Tyco International Ltd. stated Nov. 23 it plans to buy AMP Inc. for at least $11.3 billion—apparently saving AMP from the clutches of a four-month hostile takeover bid by Allied Signal. Assuming it's trading between $60 and $67 per share, Tyco will trade .

By Staff December 1, 1998

Hamilton, Bermuda, and Harrisburg, Pa.— In a classic white knight-to-the-rescue scenario, Tyco International Ltd. stated Nov. 23 it plans to buy AMP Inc. for at least $11.3 billion—apparently saving AMP from the clutches of a four-month hostile takeover bid by Allied Signal. Assuming it’s trading between $60 and $67 per share, Tyco will trade .7839 of a Tyco share for each outstanding $51 AMP share, though Tyco won’t have to pay more than $55.95 per AMP share. AMP will join one of Tyco’s subsidiaries, and the merger will be defined as a pooling of interests immediately accreditive to Tyco’s earnings. Expected to close in January 1999, the merger will create a company with a $54 billion market capitalization and more than $22 billion in annual revenues. “We are bringing to Tyco, by far, the world’s largest electronics connector company, with an exceptionally strong market position and the most respected brand name in the industry,” says L. Dennis Koslowski, Tyco’s chairman and ceo. By maintaining AMP shares were worth more than the approximately $44.50 per share offered by Allied Signal, AMP’s leaders staved off Allied Signal’s repeated takeover attempts with several strategies. These included seeking state legislation in Pennsylvania to require a shareholder vote on changing corporate control and a self-tender offer of $55 per share for 30 million AMP shares.