Tyco Electronics yesterday became the latest Bermuda international company to announce its intention to move to Switzerland.

The company, which is one of the world's biggest makers of electrical components was formed in June 2007, said in a statement yesterday that the board of directors had voted unanimously for the move and the decision would go to shareholders for approval.

Chief executive officer Tom Lynch said Switzerland had a "stable political, economic and regulatory environment, as well as long-established commercial relationships and tax treaties with other countries".

A spokeswoman for Tyco Electronics said the company had "a handful" of employees in Bermuda and only after talking with those staff would the company be able to comment on what will happen to them. No number is listed in the telephone book for Tyco Electronics' Bermuda office.

Tyco Electronics is one of three companies formed in the break-up of Tyco International in 2007. The other two, health care products giant Covidien and industrial conglomerate Tyco International, have already announced that they intend to move their corporate headquarters away from Bermuda, Covidien to Ireland and Tyco to Switzerland.

"Our board of directors and management team have concluded that this change is in the best interests of both the company and our shareholders," Mr. Lynch said. "Since Tyco Electronics became an independent company in June 2007, we have taken a number of actions to improve the effectiveness and competitiveness of our global business operations. This is another important action in our evolution as an independent company. We have had a substantial presence in Switzerland since 1985, including corporate administrative operations, four manufacturing facilities and approximately 1,000 Swiss employees."

As well as the three Tyco spin-offs, last month engineering company Foster Wheeler and oil company Weatherford International announced their intention to leave Bermuda for Switzerland. Shareholders of another oil company, Transocean, gave final approval to its move to Switzerland.

Concerns over potential future tax legislation from the incoming Obama administration in the US that could be punitive towards offshore jurisdictions are thought to be a major factor in their decisions to leave.

Mr. Obama, due to be sworn in as the US President next Tuesday, has promised to "shut down the tax havens". Companies which relocated their headquarters offshore from the US — known as corporate inversions — in order to cut their US tax bill are likely to be the worst affected by tax changes.

Most Bermuda insurance and reinsurance companies were originally incorporated on the Island and may have less to fear, although Everest Re is one example of a reinsurer which is a corporate inversion.

Switzerland, a non-EU country in Central Europe, is an attractive domicile, partly because of its low tax rates and its long-standing tax treaty with the US.

Last summer, Ace Ltd., whose principal executive offices are in Bermuda, relocated its holding company from the Cayman Islands to Switzerland.

Tyco Electronics said it does not anticipate any material change in its operations or financial results as a result of its change of domicile. The company will continue to trade on the New York Stock Exchange.