Tyco to split into three companies (Reuters)

(Reuters) – Diversified manufacturer Tyco International (TYC.N) said it would split its business into three independent publicly traded companies, becoming the latest conglomerate to announce plans to split itself.

Consumer companies Kraft Foods Inc (KFT.N), Ralcorp Holdings (RAL.N), finance-to-education conglomerate McGraw-Hill Cos Inc (MHPO.N) and energy giant ConocoPhillips (COP.N) had announced plans to split its business.

Tyco said its shareholders would own a 100 percent stake in each of the three companies -- ADT North America residential security business, flow control products and services and the fire and security business.

Tyco said it expects one-time transaction costs to be about $700 million.

The company said the three entities together are initially expected to pay a dividend that is about equal in sum to the current Tyco dividend, and it expects the transaction to be completed in about 12 months.

Tyco shares closed at $43.70 on Friday on the New York Stock Exchange.

(Reporting by Megha Mandavia in Bangalore; Editing by Viraj Nair, Maju Samuel)

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