A plan to split the Bermuda-headquartered $63 billion conglomerate Tyco International into three separate companies later this year remains on track after two high-level meetings on the Island.

And if anyone doubts the value of Tyco chairman’s Edward Breen leadership — which earns him a salary and bonuses of $3.5m, plus $131 million in options — he had the perfect answer as he revealed the global company grew its revenue by $2 billion during 2006 to $41 billion.

While the multi-faceted company was putting on a four-percent revenue spurt it was also buying back 95 million shares to return excess cash to shareholders.

At the company’s annual meeting held at the Fairmont Hamilton Princess Hotel yesterday, Mr. Breen spoke on the intention of the company to break into three separate entities before the end of September.

The name Tyco International is to be retained for one of the three new companies. It will become a combination of Tyco Fire & Security and Engineered Products & Services.

The other two proposed separated companies will be Tyco Electronics, providing engineered electronic components, network solutions and wireless systems, and Tyco Healthcare — a developer, manufacturer and distributor of medical devices and supplies.

“As we move into 2007, we are more convinced than ever the upcoming separation is the right move at the right time and the separation is expected to be achieved through a tax-free dividend of 100 percent of the stock of Tyco Healthcare and Tyco Electronics,” said Mr. Breen.

“We are fortunate to have a great mix of businesses with market-leading positions. Looking forward, these companies are positioned to be able to move faster and more aggressively — and ultimately create value for shareholders — by pursuing their own growth strategies as independent entities.

“Along with the great work that has been done by thousands of employees around the globe to strengthen these companies in the last few years, separating them now is the right way to position them for sustained long-term growth.”

Mr. Breen and a number of current Tyco executives will remain in place heading the new Tyco International, which will have 115,000 employees and be organised into major business segments including ADT worldwide, fire protection services, flow control, safety products and electrical and metal products.

The Tyco Electronics company will have 99,000 employees. That segment of Tyco had revenue of $12.7 billion in 2006.

Tyco Healthcare, which has products sold under brand names including United States Surgical, Autosuture, Valleylab, Nellcor and Kendall will have 43,000 employees. That portion of Tyco recorded revenue of $9.6 billion in 2006.

Shareholders had to agree to the plan (see separate story) which will involved a one-for-four reverse share split of current Tyco shares.

Mr. Breen said: “Tyco International, Tyco Electronics and Tyco Healthcare are great companies each with a bright future.”

Amongst the current Tyco board of directors is ACE chairman Brian Duperreault and the billionaire media mogul and Bermuda resident Bruce Gordon.

Stock split approved — see page 26.