"John R. Carroll" wrote in
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"D Murphy" wrote in message
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john wrote in
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D Murphy wrote:

"John R. Carroll" wrote in
:


These have either gone or are going to jail except for Lowell
Milken. Mike went for him.

Dennis Kozloski, Tyco. Theft. Fraud, Conversion.

His conviction will be overturned. There are no laws governing
compensation, and that is basically what he was convicted of,
being paid too much.

Here is a guy that grew the company by 80 billion dollars. Tyco
grew to be larger and more profitable than GM. He did this in the
midst of a recession. In 2001 the company had a pretax profit of
over 5 billion dollars. What is fair compensation for someone who
brings in those kinds of numbers?

Does he have a big ego? Sure. Wouldn't anyone who bagged the deals
he did? The SEC investigated Tyco and found no fraud, wrong doing,
or illegal accounting. The company is still in business and never
tanked in fact Tyco made loads of money.

So he's been convicted for buying an expensive shower curtain,
throwing an expensive party, and being paid too much money. I
doubt his conviction will hold up under appeal. He will probably
get nailed for not paying enough income tax at some point.

--

Dan



He bought AMP and stripped it to inflate his profits. A lot of
jobs were lost in Pa.


Amp was dead no matter who owned it. The whole telecom bubble burst
and no company survived unscathed. Where are all of the high flyers
today? Lucent, ADC, Worldcom, etc, etc.

I'll bet he sits around wishing he never bought Amp and all of the
other telecom companies that imploded. Tyco wouldn't have lost 9
billion and he probably would have escaped all of the scrutiny.




There wasn't much cash in any of those deals Dan. Dennis was printing
his own brand of currency and in so doing he leveraged his capital in
a big way. That was what he was being paid so well to do. He was
really selling the boards of the companies being purchased on the
future value of Tyco stock. He was good at it and had he not done
those deals and many others he would have been out on his ass. It was
what he was hired and expected to do. It wasn't either a secret or a
mystery.


I realize that. But they weren't corporate raiders either. Tyco was
trying to emulate the success of GE. Growth through aquisition.

I supplied equipment to various companies that were bought by Tyco. Their
main goal seemed to be to automate operations as much as possible and
eliminate labor. They were also big on eliminating inventory, JIT, and
quality. In other words they wanted to be a manufacturer, not a raider.

Back to your point. While Tyco was leveraging their own stock to aquire
companies, bad aquisitions still result in real losses. I imagine
Koslowski was under tremendous pressure to build a position in telecom.
It was supposed to be the next big thing. It turned out to be too much
speculation and not enough business. I know of a lot of job shops that
went under when the bubble burst. It also screwed up certain segments of
the machine tool market for a while. Lots of late model used machines
available for pennies on the dollar.


--

Dan