Technologies' Power Systems business unit for $2.5 billion in cash.

The purchase, announced yesterday, is subject to regulatory approval.

"We expect that the acquisition of LPS, like previous acquisitions, will be immediately accretive to Tyco's earnings,'' L. Dennis Kozlowski, chairman and chief executive officer of Tyco International, said in a statement.

News of the acquisition sent shares of Tyco falling $4.44, or 8 percent, to $49.75 in regular trading on the New York Stock Exchange.

Tyco buying Lucent business unit Lucent's stock rose $1.38, or 6.3 percent, to $23.25 on the NYSE.

Tyco, which is based in Bermuda but does business out of New Hampshire, makes electrical and electronic parts, flow control valves and medical devices.

Lucent is based in Murray Hill, New Jersey. It's Power Systems business unit is based in Mesquite, Texas.

"The acquisition of LPS is an excellent fit for Tyco,'' Kozlowski said. "It provides a link between Tyco Electronics' electronic components and TyCom's communications networks.''