ADT: ALARM ANSWERED
Executives of ADT, the alarm company, thought they were being robbed by a lowball offer from Western Resources. So they found a friendly merger partner, Tyco International, based in Exeter, N.H., and structured the deal to foil Western. Shares of ADT, based in Boca Raton, Fla., rose 18%, to 25 5/8, on Mar. 17 on news of the deal.
The complex merger--in which ADT is technically the acquirer but Tyco would be the surviving entity--was worth $29 a share to ADT when the deal was struck. Western says it is reviewing its rights as ADT's largest shareholder.
Updated June 15, 1997 by bwwebmaster
Copyright 1997, Bloomberg L.P.