Tyco confirms unannounced buying spree

Tyco International spent $8 billion during the last three years acquiring more than 700 small companies and business units--none of which were announced publicly, the Wall Street Journal reported today.

In a letter to its shareholders, Tyco revealed it spent $4.19 billion in cash on 350 unannounced deals last year. Tyco officials told the Journal separately it paid $2.3 billion for 225 unannounced deals in 2000 and $1.5 billion for another 150 to 175 companies in 1999.

Tyco has been acquiring numerous multiple companies to become a “recession-proof” conglomerate. But Tyco reversed its strategy last month, announcing it would split the company into four separate independently traded entities, roughly along industry lines. Its telecom power, optical component and long-haul carrier business will become part of the largest of the new companies, Tyco Security and Electronics.

--Kevin Fitchard, staff writer