investigation by official bodies in the United States into its accounting methods and financial statements was dropped.

Last night Tyco announced that it had been advised that the informal inquiry, which was being conducted by the staff of the Division of Enforcement of the Securities and Exchange Commission since December 1999, was terminated.

In a release, Tyco said it received a letter from the staff advising it of the action being dropped on July 13, 2000.

The letter states that, consistent with Securities Act Release No. 5310, "the staff has completed its investigation and that at this time no enforcement action has been recommended to the Commission.'' A statement from Tyco said: "As Tyco has previously stated, the company has at all times been confident with respect to the propriety of its accounting and its previously issued financial statements.'' Tyco is a diversified manufacturing and service company which is the world's largest manufacturer and servicer of electrical and electronic components and undersea telecoms systems.