Tyco also said it planned to lay off 7,100 employees, or 3 percent of its work force, mostly in its electronics and telecommunications units.

Plessey is seeking to win control of a $3.2 billion telecommunications unit that it owns with General Electric of Britain.

After Friday's close, the company reported that its second-quarter net income doubled, thanks to improved results from its telecommunications unit.

Its Atlanta-based telecommunications unit provides mobile telephone services and government and satellite communications systems.

Paying down debt, buying back stock or finding other investments might not yield shareholders a return as high as keeping the telecommunications unit.

In addition to the effects of the Moroccan deal, the company's telecommunications unit benefited from strong performance at its cell phone business in France.

That policy will continue and may accelerate once Enel negotiates the sale of its telecommunications unit, Wind.

The company has been rumored to be considering the sale of several subsidiaries, including a telecommunications unit and a financial information service.

Deeper cuts may be needed this year, analysts said, particularly at NEC's telecommunications unit.

Operating income at the telecommunications unit rose 19 percent.