fire-safety and security company, is believed to be eyeing Williams, its smaller British counterpart, said the Sunday Times newspaper.

It is not clear whether Tyco is preparing to make a bid for Williams, which is valued at 2.7 billion ($4.53 billion), said the paper.

Tyco, which has embarked on a large-scale drive to expand by acquisition, prefers agreed takeovers to hostile bids. Williams could fetch around 5 billion or more than 6 a share, said the unsourced article.

Williams shares closed at 373 pence on Friday. In September Williams beat stock market forecasts to report pre-tax profits of 133 million for the six months to June 30.

On Friday, Tyco's stock closed 81 cents lower at $61.94 on the New York Stock Exchange.

Tyco cuts jobs at US Surgical: Page 29 NEWSPAPER NJ