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News > Companies
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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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