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Tyco: We're no WorldCom
Conglomerate says it has brought in forensic accountants to pore over its books.
July 2, 2002: 12:58 PM EDT

NEW YORK (CNN/Money) - Tyco International's interim CEO moved to distance his company from the WorldCom scandal Tuesday and said special accountants are examining the company's books.

John Fort, in a conference call with analysts, said an "internal investigation is using forensic accountants," who specialize in confirming difficult-to-discern financial data.

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"WorldCom couldn't happen here," said Fort, a company director who took over after former CEO Dennis Kozlowski was indicted for evading $1 million in New York sales tax. Kozlowski pled not guilty.

He added that Tyco has no information calling its accounting into question.

Since falling to a 52-week low of $8.25 this spring, Tyco (TYC: Research, Estimates) shares have partially rebounded. Hammered by questions about its accounting, Tyco nonetheless has not restated results. That contrasts with WorldCom, which revealed a week ago that it artificially inflated profits by hiding $3.8 billion in expenses.

Tyco Tuesday sold its financial unit, CIT Group (CIT: Research, Estimates), in an initial public offering that raised $4.6 billion. The proceeds will help Tyco pay down part of its $27 billion in debt.  Top of page






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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2012 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2012 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2012. All rights reserved. Most stock quote data provided by BATS.