Tyco International Inc. outbid AlliedSignal Inc. Monday, reaching an $11.2 billion agreement to acquire AMP Inc., the world's leading maker of electrical and electronic connectors. Tyco owns Graphic Controls in Buffalo.
AlliedSignal, which has been pushing its $10 billion hostile bid since August, said it would not raise its offer. In the offer disclosed Monday and approved by the boards of Tyco International and AMP, Tyco will give shareholders 0.7839 share of its stock -- or $51.35 a share as of Monday's close -- for each AMP share.
Shares of all three companies rose on the New York Stock Exchange in response to the deal announced in the morning. AMP shot up 6.6 percent, or by $3, to $48.12 1/2 a share. Tyco gained 48 1/8 cents to $65.50, and Allied Signal rose $1 to $42.81 1/4 .
The boards of Tyco and AMP have each approved their agreement to merge into a company with more than $22 billion in annual revenue and operations in more than 80 countries.
AMP, with annual revenues of about $5.5 billion, designs, manufactures and markets a broad range of electronic connection devices for the communications, automotive and personal computer markets.
Tyco is the world's largest manufacturer and installer of fire protection systems, the largest provider of electronic security services and the largest manufacturer of flow control valves. It also has business in disposable medical products, plastics and adhesives, electrical and electronic components and underwater telecommunications systems.
Consumer confidence rebounds
NEW YORK (AP) -- Consumer confidence rebounded in November after four months of losses, boosted by a surging U.S. stock market and fewer concerns about President Clinton's future.
The Conference Board reported today its index of consumer confidence rose 6.7 points to 126 from a revised 119.3 in October, when it was at its lowest point in nearly two years.
Consumer sentiment is an important economic indicator since consumer spending accounts for two-thirds of the nation's overall economic activity.
Separately today, the Commerce Department reported the gross domestic product, the sum of all goods and services produced within U.S. borders, surged at a robust 3.9 percent seasonally adjusted annual rate in the July-September quarter.
According to the survey, consumers in November remain very confident about the current economic conditions and are less concerned with what to expect in the future.
The index that measures feelings about present conditions rose 0.5 points to 165.7, while the index that measures expectations for the next six months rose 10.8 points to 99.5.
The consumer confidence index, started in 1967, is compiled from responses to questions sent to 5,000 households nationwide. The survey polls consumers on matters ranging from job prospects to buying plans. The index compares results to its base year, 1985, when it stood at 100.
Oprah, 2 others, plan new channel
NEW YORK (AP) -- Three of the most successful women in television are banding together to form the Oxygen Channel, a cable network aimed at women, the New York Times reported today.
Former Nickelodeon president Geraldine Laybourne's company, Oxygen Media, announced today it will team with Oprah Winfrey and producer Marcy Carsey to create the new channel, which will provide entertainment, news and sports programming.
Oxygen would compete with Lifetime, the only established cable channel that caters directly to women. Lifetime, which is already seen in 72 million homes, has consisted mainly of movies and reruns.
Oxygen, which is expected to make its debut Jan. 1, 2000, would offer a range of programming.
Yields mixed on Treasury bills
WASHINGTON (AP) -- Interest rates on short-term Treasury securities were mixed in Monday's auction.
The Treasury Department sold $8 billion in three-month bills at a discount rate of 4.45 percent, up from 4.40 percent last week.
An additional $8 billion was sold in six-month bills at a rate of 4.43 percent, the same as last week.
The new discount rates understate the actual return to investors -- 4.56 percent for three-month bills, with a $10,000 bill selling for $9,888.80, and 4.59 percent for a six-month bill selling for $9,777.30.