Tyco's CIT IPO Falls Short of Plan
CIT Group net $4.6 billion in its initial public offering (IPO) on July 1, although that figure was half of what troubled parent company Tyco International paid when it purchased the finance company last year.
Tyco had estimated CIT’s worth at $11 billion as of last month and anticipated raising between $5 billion and $6 billion in the IPO.
Bermuda-based Tyco is struggling with more than $27 billion in debt and shareholder demands that the company reduce its debt burden. The company has said it plans to use the proceeds from the CIT IPO to pay off some of its debts. The company is also facing a Securities and Exchange Commission investigation into its accounting practices.
