percent of FLAG Telecom's outstanding common shares.

Early termination of the waiting period under the Antitrust Improvements Act was granted on May 18 for a potential private market purchase of 15 million outstanding common shares of FLAG.

A subsidiary of Tyco, TyCom Ltd, has entered into a nine month put option that, if exercised would cause TyCom or an affiliate to purchase outstanding FLAG shares at market price in exchange for not more than 1.4 percent of the shares of TyCom and cash.

The purchase price would be in the form of 90 percent TyCom shares and ten percent cash and the transaction is subject to conditions which include board approvals. The transaction would not involve a change in control of FLAG Telecom. Tyco intends to hold the shares for investment purposes and has no present intention or right to acquire any additional equity interest in FLAG Telecom.

BUSINESS BUC