RE: Tyco International Ltd. (“TYC/TYC1C”) Distribution of Shares of
Covidien Ltd. (“COV”) and Tyco Electronics Ltd. (“TEL”)
Ex-Distribution Date: July 2, 2007
Tyco International Ltd. (“TYC/TYC1C”) has announced a distribution of shares of common stock of Covidien Ltd. (“COV”) and Tyco Electronics Ltd. (“TEL”). The distribution ratios will be 0.25 share of common stock of Covidien Ltd. and 0.25 share of common stock of Tyco Electronics Ltd. for each one (1) share of common stock of Tyco International Ltd. The ex-date for the distribution will be Monday, July 2, 2007. Opening positions and start-of-day prices for July 2 will be based on final positions and settlement prices from Friday, June 29, 2007.
Note: Immediately following the distribution, the Common Shares of Tyco International Ltd. (“TYC”) will have a 1-for-4 reverse stock split.
TYC1C Contract Adjustment
Pursuant to The Options Clearing Corp. rules, all outstanding TYC1C future contracts outstanding as of Monday, July 2, 2007, shall be adjusted to require the per-contract delivery or receipt of the following: (A) 25 shares of (New) Tyco International Ltd. common stock (“TYC”); plus (B) 25 shares of Covidien Ltd. common stock (“COV”); plus (C) 25 shares of Tyco Electronics Ltd. common stock (“TEL”). The TYC1C futures symbol will change to TYC2C. The contract multiplier will remain at 100 (1.00 will equal $100). The CME clearing code for the resulting TYC2C contracts will be TY2.
New Unadjusted Series
To facilitate the maintenance of a fair and orderly market in Tyco International Ltd. future contracts, new TYC1C standard contracts with a contract unit of 100 shares will be introduced on Tuesday, July 3, 2007. The CME clearing code for the new TYC1C remains TY.
If not determined prior to expiration, the OCC will delay final settlement of TYC2C futures contracts until the end of “when issued” trading in Covidien Ltd. and Tyco Electronics Ltd.
This Corporate Event will not affect Monday’s variation settlement process.
GTC Order Conversion
On Friday, June 29, 2007, immediately after the close of business, the OneChicago match engine will convert all resting orders in the TYC1C order books. Resting GTC orders will not be adjusted but will be redirected to the new trading symbol TYC2C. Member firms must determine if the new GTC order terms meet their clients’ objectives and cancel or replace orders as appropriate.