Citi Comments On Takeout Buzz On Tyco

According to Citi, Tyco International (NYSE: TYC) is hearing takeout buzz.

Citi said that, in a transaction that has positive implications for valuing Tyco's ADT security business and one that is likely to spark further Tyco takeover speculation/upside, private equity firms Bain and Hellman & Friedman teamed up to acquire Sweden-based Securitas Direct from buyout firm EQT. “Media reports put the deal at $3.3 billion, equating to a lofty 14.5x 2010 EBITDA and 3.8x sales. Securitas Direct, not to be confused with similarly-named Sweden-based Securitas (SECUb.SE), is a leading European alarm and security service company with both residential and light commercial exposure serving 1.3 million customers in 10 European countries.”

Tyco International closed yesterday at $46.74.