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Tyco on rumor patrol
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January 18, 2002: 4:00 p.m. ET
Manufacturer calls analyst meeting to quell negative talk
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NEW YORK (CNN/Money) - Complaining about "baseless rumors" that are battering its stock price, Tyco International said Friday it would hold an impromptu analyst meeting Jan. 22.
"We are holding this meeting to respond to the continuing stream of baseless rumors that are depressing our stock, and to discuss ways in which we plan to enhance shareholder and debtholder value," Tyco said in a statement.
Shares of Tyco (TYC: up $1.23 to $46.30, Research, Estimates) finished higher Friday, snapping a series of declines that has seen the stock lose more than a quarter of its value since the beginning of the year.
Rumors have swirled around the stock since Jan 2., when a research firm speculated that it might be the subject of a new SEC investigation, which Tyco denied.
Last Friday, Tyco issued a denial of rumors that it was interested in buying diversified manufacturer and defense contractor Honeywell International Inc. (HON: up $0.24 to $29.35, Research, Estimates).
The company warned Tuesday that earnings for its March quarter would miss most analysts' forecasts because of weakness in its electronics business.
Shares of the stock were off as much as $3.07, or nearly 7 percent, in Friday trading on the New York Stock Exchange but rallied into the plus column after Tyco released its statement.
"Unfortunately, we believe the stock is caught in fear-driven momentum selling, which may not be over," said Salomon Smith Barney analyst Jeffrey Sprague in a Friday research note.
Bermuda-based Tyco is a diversified manufacturing and service company that has been on an acquisition binge over the last two years. 
from staff and wire reports
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