Motorola boss takes on troubled Tyco

CRISIS-HIT Tyco International has recruited Motorola's president and chief operating officer, Edward Breen, for its top job. Headhunters said Breen was taking on one of the most daunting jobs in corporate America.

The move follows the resignation and subsequent arrest of former chief executive Dennis Kozlowski for alleged tax evasion. In addition to that scandal, Tyco has been beset by accounting worries.

News of Breen's move helped propel the shares 29% to $10.05 in after-hours electronic trading, while Motorola's stock fell more than 10% to $10.75.

Christian college-educated Breen has a reputation for rapid decision-making and an emphasis on efficiency and cost control. He is not a jet-setting tycoon in the mould of Kozlowski, rather a steady Mid-Westerner from a modest background who married his childhood sweetheart and worked his way to the top at Motorola over 21 years.

Last night, Breen said he saw his role as restoring confidence at Tyco and to 'ensure we have the highest standards of corporate governance in place and create value for shareholders'.

He was chairman and chief executive of General Instrument Corp when Motorola acquired the cable set-top box maker in January 2000 for $16bn (£10.1bn) and swiftly developed synergies between the two.

Motorola chairman and chief executive Christopher Galvin has taken over Breen's role at the world's second-largest maker of mobile phones until a permanent successor is found. Last night, he generously paid tribute to Breen, saying: 'I want to thank Ed for his significant contribution in accomplishing the postmerger synergies of General Instrument and Motorola.'

Mike Zafirovski, head of its mobile phone unit, could take Breen's role at Motorola.

The Securities and Exchange Commission is investigating Kozlowski's financial dealings with the company. He is charged with evading about $1m in sales taxes on artwork purchases.

Yesterday, Tyco assured investors it does not expect to restate earnings, adding it is not considering bankruptcy and does not need fresh financing to meet expenses.

The Tyco conglomerate makes a variety of products including coat hangers and hospital equipment.