BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific Arabic Spanish Russian Chinese Welsh

 You are in: Business
Front Page 
UK Politics 
Market Data 
Your Money 
Business Basics 
Talking Point 
In Depth 

Commonwealth Games 2002

BBC Sport

BBC Weather

Friday, 8 February, 2002, 07:25 GMT
Tyco admits mistakes
Dennis Kozlowski, chairman and chief executive, Tyco
Kozlowski: Would not have done it today
The electronics to plastics conglomerate Tyco International has admitted mistakes in relation to a $10bn (7bn) acquisition of a finance firm.

In a television interview conducted by the former General Electric chairman Jack Welch, Tyco's chief executive and chairman Dennis Kozlowski said he would not have acquired CIT had he known what he does now.

When asked about a $10m cash payment to Tyco director Frank Walsh, and a further $10m to a charity in which Mr Walsh is a trustee, Mr Kozlowski said it would never happen again.

Mr Kozlowski was interviewed on the financial news channel CNBC where his friend, Mr Welch, appeared as a guest interviewer.

Enron worries

Tyco has seen its share price collapse this year, amidst investors' concerns about the conglomerate's accounting methods.

In the wake of the Enron scandal, investors have become increasingly concerned about the way conglomerates can hide their losses within the accounts of their complicated business structures.

Earlier this week, Mr Welch's former company found itself subjected to this new mood of suspicion on Wall Street about company profits.

GE's chief executive Jeffrey Immelt responded to criticism about how transparent its business is by saying the company may disclose more financial detail in its next annual report.

Also this week, two investigations were launched into the bankrupt high speed telecommunications Global Crossing's accounting practices.

One of the investigations was commissioned by the company, the other one is carried out by the US Securities and Exchange Commission (SEC).

And on Thursday, the Irish drug maker Elan said that the SEC has launched an investigating into claims that its accounts may have been deceptive.

See also:

07 Feb 02 | Business
Former Enron boss declares innocence
04 Feb 02 | Business
GE engulfed in 'Enron ripple'
30 Jan 02 | Business
Tyco hit by 'Enron ripple'
05 Feb 02 | Business
Global Crossing accounts probed
05 Feb 02 | Business
Irish drugs firm hit by lawsuits
Internet links:

The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.

E-mail this story to a friend

Links to more Business stories