Monopoly

Tyco Builds More Monopolies

Tyco, Grinnell’s parent company, is often cited for its near-monopolistic control of several industrial sectors. The Supreme Court ruled against Grinnell over their monopolistic activities in the fire protection industry. The Australian Government has fined Grinnell millions of dollars for bid rigging the fire protection industry.

JC Penney representatives said they were "stunned" when the federal government allowed Tyco to buy Batts, who was JC Penney’s hanger supplier, because it created a monopoly.

However, Tyco’s recent purchase of Central Sprinklers gives Grinnell over one-half of the US market, and ownership of three of the six major sprinkler brands. Within a few months, Tyco announced an 8% average price increase, but prices soared 40% on a popular brand of sprinkler that only Tyco and Central Sprinkler made. Tyco confirmed they raised the price of one sprinklers head by 40%.

"When Central was independent, they were very aggressive on their pricing," said Marty Giles of Virginia Sprinkler Company, "but since Tyco owns them all now, they can push their prices up."

Tyco has also been raising prices on two types of fire sprinkler system pipe, plastic and thin-wall steel. Since buying their chief rival three years ago, Tyco now has a 70% market share for steel pipe and a 60% market share for plastic, since the Central Takeover.

Now comes the February 21, 2000 article in the Portsmouth, New Hampshire Herald. The Herald reports that Tyco is cornering the commercial market for clothes hangers. According to the article, Tyco began by buying up two of the hanger suppliers for K-Mart. K-Mart who was fearful that Tyco would corner the hanger market began funneling its business to a third company, WAF. Then Tyco bought up WAF and soon afterwards raised the prices of Kmart’s hangers.

JC Penney representatives said they were "stunned" when the federal government allowed Tyco to buy Batts, who was JC Penney’s hanger supplier, because it created a monopoly. JC Penney said after Tyco’s takeover service worsened, deliveries were late and prices jumped.

litigation & Liens
Civil Suits Against Tyco’s Accounting are Still Pending	Grinnell Corporate lawsuit Wrap-Up
Several disgruntled Tyco investors in Florida, New York and New Hampshire have filed civil suits over Tyco’s accounting methods and financial statements. The suits charge that top Tyco officers misled stockholders and used accounting methods that inflated reported earnings while dumping millions of their own shares at inflated prices. A Dallas Fund Manager David Price questioned Tyco’s use of "pooling of interest" accounting, a type of all stock buyout that generally results in higher reported earnings. In related news, a column in the New York Times October 29, 1999 issue reported that two companies acquired by Tyco had taken large write-offs just before being acquired which skewed large economic comparisons. The column said that Tyco had not fully disclosed these write-offs in its SEC filings. The SEC itself has not filed any charges against Tyco.	Global Crossing Ltd has sued Tyco Submarine, a subsidiary of Grinnell’s parent company, Tyco. More information regarding this lawsuit will be available in issues to come.
	The devil and grinnell do not fear god: Grinnell Files a Lien Against a Church
	According to the August 25, 2000 East Bay Business Times, Grinnell Fire Protection filed a lien for $18,619 against the property of the Allen Temple Baptist Church, because of a dispute with Con Bay Group.