Tyco International Ltd. has decided against selling its lending division and will instead spin it off in an initial public stock offering next week.
Bidders for Tyco's CIT unit discussed prices that fell within the same US$5 billion to US$5.8 billion range the company hopes to raise from an IPO, said the source, who spoke on condition of anonymity.
But the company decided to proceed with the IPO because doing so will raise money more quickly, a source close to the company said Wednesday. Tyco bought CIT Group Inc. for US$9.2 billion a year ago.
CIT Group is parent to CIT Commercial Services, the United States’ largest provider of factoring and related services. The group is a leading, global source of financing and leasing capital and an advisor for companies in more than 30 industries.
The IPO is scheduled to price on Monday. Shares would be publicly traded under the CIT symbol on the New York Stock Exchange starting Tuesday.
