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Tyco to buy ADT for $5.6B
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March 17, 1997: 8:51 p.m. ET
'White knight' tops $3.5B hostile bid from Western Resources
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NEW YORK (CNNfn) - Tyco International Ltd. announced plans Monday to come in as a "white knight" and buy ADT Ltd. for $5.6 billion in stock -- topping a $3.5 billion hostile offer from Western Resources Inc.
Tyco said investors will receive 0.48 shares of a combined Tyco-ADT entity for each ADT share held.
That translates roughly $29 of value for each ADT share held, based on Tyco stock's Friday closing price of 60-1/4.
By contrast, Western Resources only offered about $22.50 a share for ADT.
The deal will leave Tyco shareholders with 64 percent of the combined company's shares and ADT holders with 36 percent.
Tyco's current chief, L. Dennis Koslowski, will head the combined entity.
After the merger, Tyco will have more than $8.5 billion in annual revenues, the companies said.
Exeter, N.H.-based Tyco said it will merge ADT with its fire and safety services operations. Tyco also manufactures disposable electrical and electronic components, medical products and packaging materials.
Boca Raton, Fla.-based ADT the largest provider of electronic-security services in North America and Britain, with more than 1.8 million customers.
--Will Morton
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Western Resources
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