Tyco Taps Motorola President as CEO

Tyco International Ltd. appointed Motorola Inc. President Edward D. Breen its new chairman and chief executive Thursday as the conglomerate struggles to right itself amid questions about its accounting and investigations involving several top officers.

The announcement, made after markets closed, came the same day that Tyco’s shares plunged amid rumors it would seek bankruptcy protection. The company denied those rumors.

The stock slid $1.75, or 18%, to $8.25 on the New York Stock Exchange, then surged to $10.05 in after-hours trading on the Breen news.

Breen replaces L. Dennis Kozlowski, who resigned June 3, a day before being indicted in New York on sales-tax-evasion charges in connection with the purchase of works of art.

“The appointment of Ed Breen as chairman and CEO is a defining moment for Tyco,” said John Fort, lead director and interim chief executive. “Ed has a superb record of tackling very difficult and complex business challenges, creating effective strategies and methodically executing on his plans.”

Financial transactions involving Fort, who headed Tyco from 1982 to 1992, and other top Tyco executives are being reviewed by Tyco, including the 1996 sale of a New Hampshire home by Fort to Kozlowski.

Breen, the former chairman and CEO of General Instrument Corp., joined Illinois-based Motorola in January 2000, when the two companies merged. He was named Motorola’s president and chief operating officer in October 2001. He was credited with instituting cost cutting and other programs to make Motorola more efficient and has led the company back to profitability.

Motorola said Mike Zafirovski, executive vice president and president of its personal communications sector, will replace Breen.

Motorola shares, off $1.28 to $12.18 on the NYSE in regular trading, fell to $10.75 after hours.