Tyco puts shower curtain behind it

Of all the products for which Tyco International (TYC) is known, it may be most famous for one it doesn't make: a $6,000 floral-patterned shower curtain.

The curtain, which hung in the $30 million company-owned apartment of ex-CEO Dennis Kozlowski, crystallized investors' furor over management greed that culminated in criminal convictions against him and his chief financial officer.

Under new leadership, Tyco has largely closed the door on scandal. Its ex-CEO and CFO are behind bars. It agreed to pay $3 billion to investors who saw their shares drop steeply. In Italy, though, the company may face unrelated charges over allegations of bribes to government officials.

Last year, Tyco spun off its health-care and electronics units. It still owns the country's largest security service and produces myriad industrial products, from valves on nuclear generators to fire-sprinkler systems in offices.

In September, under CEO Edward Breen, Tyco boosted its quarterly dividend 36 percent to 15 cents a share and set aside up to $1 billion to repurchase its stock. The company is likely to increase earnings by 20 percent over the next three years, and is a good buy today, says Deutsche Bank analyst Nigel Coe.

The Associated Press