NEW YORK (CNN/Money) - Tyco International acknowledged Friday that it is in talks with the Securities and Exchange Commission on accounting issues at its finance unit, CIT Group Inc., but still insists that it will float a new issue of the business by June 30.

Tyco's temporary CEO John Fort said the company was working with the SEC on accounting for goodwill at CIT. Fort said he expected to work out the issues shortly.

Though still planning to launch the IPO of CIT at month's end, Fort said the floatation could slip into July. Fort made the comments on a conference call Friday as he was addressing issues affecting Tyco, including the company's own investigation of its former CEO Dennis Kozlowksi and downgrades by credit ratings agency.

New York state prosecutors reportedly are investigating Tyco to determine whether the company bought homes and artwork for several executives, other than Kozlowski, without disclosing the purchases.

Shares of Tyco (TYC: Research, Estimates) plunged 31 percent Friday to close at $10.10.

Tyco's comments were meant to address concerns of a delay in the CIT IPO. Earlier Friday, CNN/Money reported that SEC concerns into the finance unit were causing the deal to stall, a source familiar with the situation said.

CIT had been expected to file an amendment with the SEC Thursday detailing more information on the offering, such as the number of shares and their price range. But the filing never made it because of SEC questions, the source said.

"It's not unusual for regulators to ask questions before giving the OK to a deal," the source said. "It's just hard to tell how serious their questions are."

"The deal won't go through until the SEC is through with it," another source familiar with the situation added.

In April, CIT filed with the SEC for an IPO that could raise as much as $7.15 billion. Credit Suisse First Boston initially was listed as lead underwriter on the deal. But in a May 13 filing, CIT listed Goldman Sachs and Lehman Brothers as co-lead underwriters. J.P. Morgan and a slew of other banks, including Banc of America Securities LLC and CSFB, were listed as part of the syndicate.

Also that month, Tyco scrapped plans Thursday to split into four separate businesses and said it would split or sell off the unit. But Tyco has had problems drumming up interest and lost a potential CIT bidder in May when Lehman Brothers pulled its $5 billion bid. Two private equity firms, Blackstone Group and Bain Capital, had planned to make a joint offer for CIT when Lehman made its bid.

Blackstone's interest has waned since Tyco apparently has chosen an IPO rather than an outright sale, another source familiar with the situation said.

Tyco, Goldman, and Lehman could not be reached for comment. Blackstone and the SEC declined comment.