Tyco International Ltd will go ahead with an Initial Public Offering of its financial services unit CIT Group after talks to sell the business to Lehman Brothers broke down last week.
Tyco is seeking approval from the Securities and Exchange Commission for an initial public offering of CIT which is expected to raise US$5billion and US$6 billion the FT said.
Last Friday, Lehman's new area interest in asset-based finance came to light amid media reports that the company had submitted a $5 billion cash bid to buy the finance company CIT Group from Tyco International. Those reports were followed just hours later by a new round of stories that the company had withdrawn the bid.
According to people close to the negotiations, Lehman was reluctant to negotiate with Tyco in public as the investment bank is also joint bookrunner for the IPO of CIT. Although Lehman could renew its interest no talks are taking place.
