Bermuda-based conglomerate Tyco International yesterday announced that it plans to split in to four public companies.

Tyco said this move should lead to substantially greater total shareholder value by creating independent companies that will be more appropriately valued by the market.

The move is also being cited by company management as consistent with its focus on maintaining 'A' financial ratings.

The company, during the coming year, plans to separate in to four independent companies; Security and Electronics; Healthcare; Fire Protection and Control and Financial Services.

The four new companies will undergo initial public offerings (IPO) during the year and will continue to be based in Bermuda.

Tyco chief executive officer Dennis Kozlowski in a meeting with analysts yesterday indicated the timing was right for this move: "As we went through our growth, our game plan was to do this at the appropriate time and it makes sense for our shareholders and bond holders.

"We could not have done this two years ago as we simply did not have the critical mass in all sectors," Mr. Kozlowski said.

Mr. Kozlowski added that by breaking up the company expects the current 16 percent return on capital to be "greatly enhanced".

In announcing the split, Tyco also announced that it intends to sell-off its plastic division.

Using proceeds from the IPOs and the sale of its plastics business, the company estimates it can eliminate at least $11 billion of debt.

Reuters news agency reported that the move caught many Wall Street analysts off guard as they prepared to meet with Tyco officers yesterday morning to discuss the persistent rumours that have hurt the firm's shares since the beginning of the year.

There has been speculation since the beginning of the month when a research firm indicated Tyco might be the subject of a new US Securities and Exchange Commission investigation. Tyco has denied it is the subject of any SEC investigation.