Tyco Bags Australian Project

A unit of Tyco International Ltd.’s (TYC - Analyst Report) Tyco Flow Control was recently selected to support the construction of Australia's largest desalination project in one of the largest public-private partnerships for infrastructure in the world.

The desalination plant in Victoria will play a key role in meeting the needs of the drought-prone areas of southern and eastern Australia by turning sea water into 40 billion gallons of drinking water per year. This will reach 3.5 million people in Melbourne and adjoining areas. Under the $120 million contract, Tyco Flow Control will supply 6,200 mild steel pipes, stretching across 53 miles and connecting the desalination plant to the Melbourne water supply system.

Tyco Flow Control's innovative flow management technology enhances the safe and efficient delivery of water to homes, schools and communities. The superior quality of materials to be used will safeguard the pipeline for decades while reducing the energy needed for pumping water. The pipes will also be manufactured on a newly completed state-of-the-art production line that incorporates 'green' improvements such as reduced energy and water consumption.

Tyco International Ltd. emerged from the July 1997 acquisition of the namesake Massachusetts corporation by ADT Ltd., a public company organized under the laws of Bermuda. ADT changed its name to Tyco International Ltd. On June 29, 2007, Tyco International Ltd. completed the spin-offs of Covidien and Tyco Electronics, formerly its Healthcare and Electronics businesses, respectively, into separate, publicly traded companies in the form of a distribution to Tyco shareholders.

Effective March 17, 2009, the company discontinued its existence as a Bermuda corporation but remains a Swiss-domiciled entity. Its major competitors include General Electric Co. (GE - Analyst Report), Honeywell International (HON - Analyst Report) and United Technologies Corp. (UTX - Analyst Report).

We currently have an Outperform recommendation on Tyco International.

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